Xiamen Hongfa opens joint venture with Matsushita

Xiamen Hongfa Electroacoustic Co. Ltd has officially opened its joint venture company with Japan-based Matsushita Electric Works Inc. named Xiamen Matsushita Electric Control Devices Co. Ltd. The new company will manufacture power relays for household appliances.

Matsushita Electric will offer R&D and marketing capabilities to the joint venture, while Xiamen Hongfa will provide research expertise and the actual manufacture of power relays. Xiamen Matsushita Electric is expected to produce 5 million units of power relays per month by 2004, with an annual production value of Rmb100 million ($120 million at $1:Rmb8.28).

Guo Manjin, general manager of Xiamen Hongfa, said, "The joint venture will strengthen their cooperation with Matsushita Electric, at the same time set up a top relay manufacturer in mainland China. Xiamen Hongfa hopes to become one of the largest relay production bases in Asia by 2005."