Chinese leader drops in on F&P

Xi Jinping with Stuart Broadhurst at the F&P plant yesterday. Photo / Dean Purcell

One of China's most powerful men, Vice-President Xi Jinping, paid a visit to Fisher & Paykel Appliances' East Tamaki plant yesterday.

Xi's visit comes a year after Chinese whiteware giant Haier bought a 20 per cent stake in F&P. At that time F&P was struggling with mounting debts and coming under increasing pressure from its banks.

Xi was welcomed at the plant by F&P executives before being shown a range of products by chief executive Stuart Broadhurst.

The Vice-President, flanked by a horde of Chinese media, said the partnership between F&P and Haier was "of a strategic nature" and the two companies would "share the market and technology".

Passing through a company staff room, Xi commented that it was "a very good environment".

In his official welcome, F&P chairman Ralph Waters said the Vice-President's visit was a special occasion for the listed manufacturer.

"Our relationship with Haier opens a new and exciting chapter in Fisher & Paykel's history," Waters said.

Xi was then taken through F&P's refrigeration plant, where he was introduced to several workers on the factory floor.

Haier vice-chairman Kesong Wu has joined Xi on his New Zealand visit, and was also at the F&P plant.

F&P spokesman Matt Orr said making contacts with high-level Chinese officials was important when doing business with China.

Until now, F&P's relationship with China had been conducted mainly through Haier, he said.

"Of course, we've got a 20 per cent shareholder in Haier, and logically we're one of the companies [Xi has] come to see."

Last month F&P opened its flagship store in the Chinese city of Hangzhou, near Shanghai.

More F&P stores in Beijing and Shanghai are expected to open within the next 18 months.

Haier will sell and market F&P's products in China, while in New Zealand and Australia F&P will sell the Chinese firm's products through its dealership network.

F&P has launched a New Zealand marketing campaign for Haier that targets younger whiteware consumers.

The business delegation led by Xi is the most high-powered to visit New Zealand, and includes various vice-ministers and representatives of Chinese companies.

Xi is widely tipped to become China's President in 2013.