F&P Appliances sends technology to China

Fisher and Paykel appliances factory in East Tamaki. Photo / Glenn Jeffrey

Fisher & Paykel Appliances will soon be supplying Chinese home goods maker Haier, its cornerstone shareholder, with New Zealand-designed technology.

The East Tamaki-based firm will provide Haier with direct-drive washing machine motors, manufactured at the company's recently commissioned plant in Reyong, Thailand.

Haier's Asia Pacific president Philip Carmichael said there would be significant demand from the Chinese firm for the Kiwi technology it required.

"About 10 per cent of the world's washing machines are made by Haier so there should be good, solid demand [for the motors]," Carmichael said.

Haier last year bought a 20 per cent stake in the F&P Appliances as the firm struggled with mounting debt.

F&P Appliances spokesman Matt Orr said the Haier motor contract was a solid commercial opportunity for the company.

"[It] is the type of arrangement we need to build our reputation of being a world leader in direct-drive motor technologies," he said.

"We would expect to see supply ramp up over time as Haier further develops new washing machine platforms."

Carmichael, one of two Haier representatives on the F&P Appliances board said: "The Fisher & Paykel motor is arguably the most efficient in this category in the world - it is somewhat unique technology."

F&P Appliances already produces components for major US appliance firms, and Orr said the Haier agreement allowed the company to further leverage its intellectual property.

Production Machinery, a wholly owned subsidiary of F&P Appliances, has also been contracted to design and commission an automated precision production line for Haier in China.

Carmichael said there were good opportunities for PML to build further lines in Haier plants.

F&P Appliances said market conditions remained uncertain. Current quarter sales were down 11 per cent on the comparative period last year.