Strauss to build Chinese purified water plant

Giora Bardea  photo: Tamar Matsafi

Strauss Water and Haier Group's joint venture HSW will invest NIS 190 million in building the plant in Qingdao.

Strauss Group Ltd. (TASE:STRS) is increasing its investment in China through the construction of a Chinese water systems plant. Strauss unit Strauss Water is making the investment through HSW, its joint venture with Haier Group.

HSW is investing 375m RMB (NIS 190 million) in the construction of a manufacturing and assembly plant for the company's products in China. The plant will be built in the city of Qingdao in eastern China on the Yellow Sea coast and is the first to be owned by the company in China.

The two-floor facility will cover 120,000 square meters. Construction is scheduled to be completed within a year. The plant will promote HSW's strategy of becoming a leader in the supply of POU (point-of-use) water solutions to the Chinese public. The new plant will place HSW on a par with the leading competitors in the market. Through Strauss Water, Strauss Group has already invested over NIS 48m in the Chinese JV in support of the realization of its strategy.

Strauss Group CEO Giora Bardea said, "As part of Strauss Group's global expansion we are continuing to invest in our business operations in China, strengthening our extensive collaboration with Haier Group. Investing in China precisely at this time also strengthens the connection between Israel and China, and reflects our great confidence in our business activities in China and in our relationship with Haier."

Strauss Water CEO Ronen Zohar, "At a time when hygiene and food safety are more important than ever, we see it as both a business and humanitarian mission to supply quality water systems to the Chinese public. This is especially true in regions where the corona virus has broken out. This investment in-house production, together with the development of innovation and engineering capabilities, will give the company greater flexibility in the development and production of innovative and unique products, faster market penetration and enable launch of high-quality products. This will significantly leverage our high-level competitive capabilities in a growing and evolving market."

HSW was established in 2010 as a partnership between Strauss Water and Haier Group, with the aim of penetrating the purified water market in China. Today, the company has the third largest market share in China and has recorded 35% average growth in the years 2014 to 2019.

Published by Globes, Israel business news - www.globes-online.com - on May 11, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Giora Bardea  photo: Tamar Matsafi
Giora Bardea photo: Tamar Matsafi
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018