Strauss Water, of the Strauss Group, and Haier Group, the Chinese Home Appliances Giant, Sign Partnership Agreement to Establish a Joint Venture for Drinking Water Solutions in ChinaBy Strauss Group Ltd, PRNE
Saturday, October 16, 2010
TEL AVIV, Israel, October 17, 2010 - Ofra Strauss, Chairperson of Strauss Group, Gadi Lesin,
President & CEO of Strauss Group, and Rami Ronen, CEO of Strauss Water,
announced today the signing of a partnership agreement between Strauss Water
of the Strauss Group and Haier Consumer Goods of the Haier Group, the Chinese
home appliances giant, to establish a joint venture in China for drinking
(Logo: www.newscom.com/cgi-bin/prnh/20080826/317650 )
This venture will be owned jointly by Strauss Water 50% and
Haier Consumer Goods 50%.
The venture will be established at a total initial investment
of $20 million, with each party investing $10 million.
The new company, which will be named "Haier-Strauss Water"
is expected to launch its first products for the Chinese market in
Ofra Strauss, Chairperson of Strauss Group, said today: "This is
an exciting day for Strauss Group, which is completing another milestone in
its global expansion and launching an international water activity in a new
continent, to meet a genuine need for healthy and high quality drinking water
While this venture presents a great challenge for Strauss Group,
I am certain that our experience in entering new markets and in managing
multinational partnerships will be a key to the success of this venture".
Gadi Lesin, President & CEO of Strauss Group, said today: "Our
entry into China takes us to the next level in the realization of our
expansion strategy across the world. This partnership will leverage the
combined know-how, capabilities and expertise of Strauss Water in developing
water treatment and purification solutions, and the leadership position and
reliability of Haier in marketing, distribution and service in China.
Rami Ronen, CEO of Strauss Water, said today: "Strauss Water is
today presenting the first milestone in the realization of its promise to
become a global water solutions company specializing in world-class drinking
water purification, filtering, heating and cooling systems for both in-home
and away-from-home markets. Our commitment to provide consumers with safe
quality water will be the essence of our global activity, including China.
We identified China as a top-priority target market with huge
business potential, and chose a partnership model with a giant market-leader
company and brand. Haier possesses the highest marketing, sales and
distribution capabilities across China and worldwide.
Today we are unveiling the Maze technology, which has been
developed by our scientists over the past four years. This technology enables
us to tailor a comprehensive solution to the Chinese market, ensuring that
consumers there are provided with safe, healthy water.
About the transaction:
Strauss Water Ltd. ("Strauss Water"), through a subsidiary
established in Hong Kong, STRAUSS WATER HK TRADING COMPANY LIMITED, signed an
agreement with Haier Group in China through its subsidiary HAIER WHOLE SET
DISTRIBUTION CO., LTD. ("Haier Consumer Goods") to establish a joint venture
in China that will engage in the marketing, sale and service based on Strauss
Water's products in China.
Based in Qingdao, Shandong Province, Haier Group is a world
leader in the development, production and marketing of electrical home
The venture is owned jointly by Strauss Water Hong Kong 50%
and Haier Consumer Goods 50%. Each party undertook to invest $10 million in
the establishment and operation of the joint venture. The Chairperson of the
Board and Chief Financial Officer will be appointed by Strauss Water, and the
Chief Executive Officer will be appointed by Haier. The Board of Directors of
the joint venture will include three representatives from each party. The
Agreement includes a mechanism designed to resolve a deadlock situation
between the parties.
The joint venture will purchase products from Strauss Water
and receive distribution and sale services, including technical service, from
Haier Group's subsidiaries.
The completion of this transaction, which is subject to
receipt of approvals from the authorities in China and to signing of related
agreement between the parties, is expected to occur by the end of the year.
About Strauss Group
Strauss Group, Israel's second-largest Food & Beverage Company, is today
an international corporation with around 13,000 global employees operating
twenty two production sites in twenty two countries. In the last six years
the Group has consistently achieved growth, generating around $1.62 Billion
in turnover at the end of 2009, of which 47% came from international
activities. The Strauss Group is comprised of four core business units:
Strauss Israel, Strauss Coffee, Strauss North America and Strauss Water.
The Group is a leading player in coffee markets in Central and Eastern
Europe, Brazil and Israel for Roast & Ground (R&G) coffee and other coffee
related products and services. Strauss Group is traded on the Tel Aviv 25
Index, which lists the largest public companies in Israel and has achieved a
top AA+ credit rating from Maalot, an affiliation of Standard and Poor's.
Strauss Group is in partnership with leading multinationals Danone and
PepsiCo; and Strauss Coffee recently entered into a partnership with TPG
Capital, a leading private equity fund.
About Strauss Water
Strauss Water of the Strauss Group, is a world leader in
providing safe quality drinking water. Strauss Water engages in the
development, production and marketing of drinking water purification,
filtering, heating and cooling systems, for in-home and away-from-home
markets, guaranteeing its long-term commitment to customers.
Strauss Water has developed the Maze technology, which is
considered a breakthrough in water purification and treatment.
Strauss Water currently operates in three geographical areas:
Israel- with the Tami4 brand, England and China- through its newly-formed
partnership with Haier.
Strauss Water plans to expand into additional geographies through
further development of innovative water purification and treatment
technologies, while maintaining its long-term commitment to customers and
caring for people, water and the environment.
Wherever it operates, the company will provide the basic need of
clean safe drinking water.
Established in 1984, Haier Group is a leading global brand of
electrical and electronic home appliances, operating in various categories
such as refrigerators, air-conditioning systems, home entertainment
electronics, communication and cellular, personal computers, washing machines
and electrical home appliances. Its global revenue in 2009 stood at $18.2
In its white appliances field, Haier ranks as the strongest and
most valuable consumer brand in China for 8 consecutive years. With 28
manufacturing plants, 8 R&D centers, 19 overseas trading companies across the
world and more than 60,000 global employees, Haier is an innovative
corporation that owns 6,189 registered patents.
Haier is largely considered a world leader in quality,
innovation, reliability and managerial excellence.
With 25,000 points of sale across China and other world regions,
Haier has massive presence in the Chinese retail sector.
While Haier's home base is China, the company also operates in
East and West Asia, Africa, Europe, Australia, the Middle East and the U.S.
A keen advocate of social responsibility issues, Haier is
considered the greenest brand in China, and operates various environmental
To visit at our website: www.strauss-group.com
For additional information: Media Contact Osnat Golan VP Communications Strauss Group Ltd. Tel +972-3-6752281 Mob +972-52-8288111 Email: email@example.com www.strauss-group.com Investors Contact Yaffa Cohen-Ifrah Director of Investor Relations Strauss Group Ltd. Tel: +972-3-6752545 Mob +972-54-5772195 Email: firstname.lastname@example.org www.strauss-group.com
Media Contact: Osnat Golan, VP Communications, Strauss Group Ltd., Tel +972-3-6752281, Mob +972-52-8288111, Email: osnat.golan at strauss-group.com; Investors Contact: Yaffa Cohen-Ifrah, Director of Investor Relations, Strauss Group Ltd., Tel: +972-3-6752545, Mob +972-54-5772195, Email: yaffa.cohen-ifrah at strauss-group.com
Tags: China, Israel, October 17, Strauss Group Ltd, Tel aviv