HONG KONG--(BUSINESS WIRE)--TCL Multimedia Technology Holdings Limited (“TCL Multimedia”, HKSE stock code: 01070) announced the signing of an MOU with its strategic partner ELARABY Group (“ELARABY”), the largest home appliance enterprise in Egypt. The signing ceremony was attended by Minister of Communications and Information Technology in Egypt Eng. Yasser El-Kady, Chief Marketing Officer of ELARABY Mr. Mohyielden Elaraby and General Manager of TCL Strategic Customer Business Center Mr. Liang Tiemin.
As a leading enterprise in the global TV industry, TCL Multimedia ranks amongst the top three globally and No. 1 in China by shipment volume (source: IHS Technology, China Market Monitor and Company data). The Group is the only vertically integrated enterprise in China that boasts the manufacturing of display panels, modules and chips as well as product assembly under the same roof. Since the establishment of the first overseas TV production base in Vietnam in 1999, the Group has also set up production bases in Poland and Mexico, further optimising the industrial layout in European and North-central American markets. The Group has been committed to brand internationalisation through cross-border acquisitions, organic expansion and other strategic planning.
ELARABY, with over 50 years of manufacturing and sales experience, is the largest home appliance enterprise in Egypt. It not only operates a number of manufacturing and fabrication plants for a multitude of products such as LED, air conditioner, washing machine, refrigerators, household appliances, lighting products, SMT placement, plastic parts, electronic components and processed metal parts, but also has a wide sales network stretching from traditional channels to new channels. It commands a high market share for home appliance in Egypt with unrivalled recognition and stays at the top of the league table in the domestic market in terms of sales capability (source: GfK data).
At the signing ceremony, Mr. Liang Tiemin of TCL Multimedia said, “Following this Sino-Egyptian strategic cooperation, a joint-venture TV manufacturing plant will be set up in Egypt to tap into the broad prospect of the Middle East and African markets, a move of strategic importance to upgrade TCL’s industrial layout. Leveraging TCL’s competition edge in research and development, supply chain management and a rich portfolio of high-end products, including curved, big screen, ultra-thin and high color domain quantum dot TVs, smart TV+ system and internet operational technologies, we will integrate our strengths with ELARABY’s manufacturing capabilities of diversified products and its extensive sales channels to realise significant synergistic benefits for both sides.”
Driven by China’s Belt and Road initiative, the Sino-Egyptian cooperation will create enormous business opportunities. The combined potential TV demand in Arabic, African and Mediterranean Free Trade Zone is expected to reach approximately 20 million sets per annum (source: GfK data). Seizing this rising opportunity and responding to the national initiative, the Group will, through this strategic cooperation with the Egyptian giant, benefit from the setting up of a new production base in Egypt and establishing TCL brand businesses in the Middle East and African regions. More importantly, the strategic collaboration is supported by governments of both countries and will receive preferential export tax rebates as incentives.
Commenting on the strategic cooperation, Mr. Mohiyielden Elaraby said, “We have established long-standing partnership with TCL’s TV business arm and have maintained good working relationship for years. We are excited to deepen our relationship further through this collaboration and are confident that the strategic cooperation will expand our sales network and strengthen our market presence with an increased share, bringing us mutual benefits.”
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About TCL Multimedia
Headquartered in China, TCL Multimedia Technology Holdings Limited (HKSE stock code: 01070) is one of the leading players in the global TV industry, engaged in the research and development, manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a “double +” strategy which includes “intelligence + internet” and “products + services” as the main direction, striving to become a “global entertainment technology enterprise” that provides integrated entertainment solution to customers. According to the latest IHS Technology figures, the Group ranked No.3 in the global LCD TV market with a market share of 5.56% and ranked No.3 in the PRC LCD TV market with a market share of 14.04% in 2015. For more information, please visit its website: http://multimedia.tcl.com.
Founded in 1964, ELARABY is the largest home appliance enterprises in Egypt with over 50 years’ manufacturing sales experience. In earlier years, ELARABY focused on producing electric fans and its current businesses cover television, air conditioner, washing machine, refrigerators, household appliance, lightning, SMT placement, plastic parts, electronic accessories and metal processing. Currently, ELARABY captured high market share and recognition in the Egyptian home appliance market and its sales capability ranked No.1 in the local home appliance brands (source: GfK data). For more information, please visit https://www.elarabygroup.com/en/.
This press release is issued by Cornerstones Communications Ltd. on behalf of TCL Multimedia Technology Holdings Limited.