Leading consumer electronics maker TCL Corp. (TCL) has agreed to build a home appliance production center in Wuhan City, Hubei Province, TCL announced July 14.
The center will be located in northwestern Wuhan’s Dongxi Lake District and act as TCL Corp.’s strategic production base in central China, according to the announcement.
The center will likely help TCL reduce logistics costs as Wuhan is a major economic and transportation hub in the region, Wang Nianchun, an analyst with Guosen Securities Co. Ltd., told Interfax July 14. The city is a key trading port on the Yangtze River, and well-served by three cross-country railway lines. The Wuhan Tianhe International Airport is also one of China’s busiest airports.
Shenzhen Stock Exchange-listed TCL will receive tax incentives from the Dongxi Lake district government to locate the facility in the area, the announcement said, without elaborating.
The center is expected to generate annual output value of RMB 30 billion ($4.64 billion) by 2015, and will be capable of producing 3.50 million air conditioners and three million refrigerators by 2012 and 2015, respectively, the announcement added.
TCL expects net profit to surge at least 190 percent year-on-year in the first half (H1) of 2011 to hit RMB 460 million ($71.15 million) on the back of growing sales revenue from multimedia products, handsets and home appliances, Interfax reported July 8.