Strauss Group Ltd. (TASE:STRS) unit Strauss Water Ltd. and Haier Group Ltd. (HKSE: 1169; SSE: 600690) today launched their joint venture in Shanghai today.
Strauss and Haier own the joint venture in equal shares. Products will initially be sold in Beijing, Shanghai and Qingdao, and later in Shenzhen and Guangzhou. Today's launch will be accompanied by a $4 million advertising campaign, entitled "Smart Water-Safe Home".
Strass Water CEO Rami Ronen said, "Strauss Water is taking an important step in the realization of its vision to become a global water company. The company's entry into China is the product of continuous efforts of the people who developed a breakthrough water purification and treatment technology, and are responsible for the production of top-quality water purifiers perfectly tailored to meet the needs and life style of Chinese consumers. The product line we are launching today is based on ten pending patents."
Strauss and Haier each invested $20 million in the joint venture, which will enable Strauss to speed up the launch of its H2Q water purification devices venture in other emerging markets. Strauss considers H2Q as an important growth engine.
Strauss Group's share price rose 1.3% in early trading today to NIS 53.69, giving a market cap of NIS 5.63 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2011
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