Shenzhen, Guangdong – China’s home appliance and electronics maker Konka Group has bought three subsidiaries of financially troubled refrigerator maker Frestec.
In June, Court-appointed administrators ordered Frestec to sell assets to meet creditors’ demands after it went into financial difficulties. Konka Group made the winning bid was at CNY 455m ($69m), slightly higher than the starting price of CNY 450m. Konka also bought the subsidiaries’ brands and patents.
Strong in brown goods such as television sets, Konka has forayed into white goods with a new site inaugurated in 2012 in Chuzhou, Anhui province. This has a 3m unit/year refrigerator capacity. Frestec’s refrigerator capacity reached 10m unit/year in 2014
Based in Shenzhen, Guangdong, Konka last year recorded CNY 1.7bn sales in the segment, up 2% from 2016.
White goods accounted for 6% of Konka’s total revenue last year, and the company plans to pump an annual amount of at least CNY 100m into white goods’ branding, research and facilities until 2021.