Taiwan Kolin Co (歌林), Taiwan's third-largest home appliance maker, plans to team up with Guangdong Kelon Electrical Holdings Co (廣東科龍電器), China's biggest refrigerator maker, in the second cross-strait partnership in the appliance industry in a week.
The Taiwan company will import Kelon refrigerators and air conditioners to sell on the island, Taiwan Kolin spokesman Chu Tai-yang said. Kelon, in turn, will sell Kolin televisions and radios in China.
Manufacturers on both sides of the Taiwan Strait are forming closer ties after the entry of Taiwan and China in the World Trade Organization, which requires the longtime political foes to cut tariffs and grant entry to one another's goods. The commercial rapprochement comes as China's economy is one the fastest-growing in the world and Taiwan's economy has slipped into its first recession.
"Cooperating with mainland Chinese makers will allow Taiwan Kolin to cut costs and tap the mainland market," Chu said.
Last week, Taiwan's Sampo Corp (
Kolin will also hire Kelon to make products under its brand name to help lower production costs, Chu said. An agreement will be signed "after the two sides agree to a few final details." Kolin plans to market its appliances at higher prices than similar products under Kelon's name to differentiate between the two brands, Chu said.
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