Delixi Electric Ltd., a joint venture of France-based Schneider Electric and China's Delixi Group, went into operation on Friday in Wenzhou, in east China's Zhejiang Province.
Schneider, one of the world's leading providers of power distribution and industrial control solutions, signed an agreement last December with Delixi Group for strategic co-operation in the new joint venture.
The new venture will make, market and distribute low-voltage products. Operations will begin once certain conditions are met and regulatory approvals are achieved.
The products will be manufactured and sold under the Delixi brand and distributed by its network of 1,500 dealerships around the nation.
With total investment of 1.8 billion yuan (240 million U.S. dollars), evenly split, and 4,000 employees, the joint venture is expected to achieve an annual output value of about 2.26 billion yuan (303 million U.S. dollars), with an after-tax profit margin of approximately 10 percent.
Delixi Group is a leader in China's electrical distribution field, employing about 14,000 people nationally. Its sales were 12.8 billion yuan (1.7 billion U.S. dollars) last year.
Source: Xinhua
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