F&P to debut in China at big show

Fisher & Paykel Appliances will make its debut in China next month and plans to be selling to the Chinese market before the end of March.

The whiteware maker is moving quickly to make the most of its new distribution agreement with Chinese manufacturer Haier, signed last month after Haier took a 20 per cent stake in Fisher & Paykel as part of a $189 million recapitalisation plan.

Fisher & Paykel chief executive John Bongard said a dozen of its senior executives had visited Haier's head office in Qingdao last week to talk with Haier's public relations, logistics and freighting teams.

"I have been up there a number of times. But this was the first time we have met as real strategic partners. It was quite a leap."

Fisher & Paykel already has a small office in China but Bongard said there was the potential to have more staff there. Several teams would head up in the next few weeks to prepare for the brand's launch into the market.

That will officially take place as part of an appliance show, the biggest in China, held on July 7 in Qingdao.

Bongard said the China market had huge potential, particularly at the top end which was expected to more than double in the next three to four years.

He said Fisher & Paykel expected to begin selling its first appliances to the Chinese through Haier by March 31.

But he added that it was still too early to put a monetary figure on its new relationship with Haier.

Bongard said the two Haier representatives who will join Fisher & Paykel's board would be named within two weeks.

Nominations closed yesterday for new directors to the board butBongard said the company was still working through who would replace several other board members who are leaving.

Former Fletcher Building chief Ralph Waters has asked to step down by the end of the year and Norm Geary has said he will not stand for re-election at the company's annual general meeting in August.

Fisher & Paykel is working through how it will distribute Haier products in New Zealand and Australia.

Haier currently uses Hong Kong-owned company Monaco Corporation to distribute in New Zealand while Haier's Australian office takes care of distribution across the Ditch.

Bongard said Fisher & Paykel would not be taking over the Australian company but he would not comment on its future.