2017.04.11
EBARA CORPORATION
Notice Concerning Purchase of Equity Interest in Joint Venture in Refrigeration and Heating Business in China
The Company hereby announces that it has acquired a 40% stake in the joint venture partner, Yantai Ebara Air Conditioning Equipment Co., Ltd. (hereinafter referred to as "Yantai Ebara Co., Ltd."), a consolidated subsidiary of the Chinese refrigeration business, and has made it a consolidated subsidiary of the 100% equity of the Group.
1. Background and objectives
In November 1996, we established Yantai Ebara Co., Ltd. with the aim of making a full-scale entry into the Chinese refrigeration market. We have expanded our business to the point where we have grown to have the top market share in China in the market area of large-scale absorption refrigerators for building equipment air conditioning and industrial applications, and absorption heat pumps for district heating and cooling applications. In 2014, we started production of turbo chillers and cooling towers to expand our product lineup.
With the aim of increasing the degree of management freedom of the company and realizing prompt decision-making, we have made the company a 100% consolidated subsidiary of the Group. In the future, we will expand the investment of the Group's management resources and further expand our business in China, which is the largest market for this business.
2. Outline of Yantai Ebara
| (1) Company name | Yantai Ebara Air Conditioning Equipment Co., Ltd. |
| (2) Establishment | 1996.11 |
| (3) Location | No. 720 Yongda Road, Fushan High New District, Yantai City, Shandong Province, China |
| (4) Net sales | 745 million yuan (FY2015 results) |
| (5) Representative | Chairman Shinji Noji (Executive Officer and Managing Director) |
| (6) Employees | 1120 (as of Dec. 2015) |
| (7) Business description | Manufacture and sale of turbo chillers, absorption refrigerators, absorption heat pumps, absorption chillers and heating, screw chillers, cooling towers, etc. |