Carrier and Midea to form a Joint Venture in India

Carrier and G. D. Midea Holding announced that a definitive agreement has been executed to form an air conditioning manufacturing and distribution joint venture in India. Midea will own 60 percent of the joint venture and Carrier 40 percent, through their respective affiliated entities. Midea is a leading residential air-conditioning manufacturer in the world. Carrier, part of UTC Climate, Controls & Security Systems, a unit of United Technologies Corp. (NYSE:UTX), is the world's leader in high technology heating, air-conditioning and refrigeration solutions, improving the world around us through engineered innovation and environmental stewardship.

The joint venture will primarily manufacture and distribute residential air-conditioning systems and will bring together Carrier's and Midea's complementary residential segment operations in India, while significantly expanding the product portfolio to further enhance customer offerings and services.

The joint venture plans to evaluate and potentially make sizeable investments up to Rs.500 crores over the next five to six years to augment manufacturing scale and product range in India. The initial investment will include a new manufacturing facility to be located in the vicinity of the existing Carrier plant in Gurgaon, Haryana, with plant capacity of up to 1,000,000 units. Over the next three years, it will also assess setting up a large scale manufacturing facility.

"This venture brings together the strengths of two leaders in the global air conditioning industry," said Gaurang Pandya, managing director, Carrier India. "Midea offers world-class design and manufacturing expertise in air conditioning systems, while Carrier has a strong pan India distribution network."

"India is one of the fastest growing economies and the right place to be. This opportunity will allow us to draw on manufacturing, technical, distribution and management experience from both parties to accelerate the growth of the new venture," said Avant Bo, Asia Pacific president, Midea.

Carrier's commercial solutions and services business in India are outside the scope of this joint venture. Carrier India will continue to provide a comprehensive suite of sustainable building solutions to customers.

The joint venture is subject to customary closing conditions and is expected to be operational in 2012.

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