Haier Smart Home Egypt Ecological Park Opening, Boosting Local Production and Global Brand Presence

10^th of Rammadan City, Egypt, May 2, 2024/PRNewswire -- Haier Smart Home (600690.SS, 6690.HK, 690D) has officially inaugurated its Ecological Park (the Egypt Ecological Park) in 10th of Ramadan City, Egypt on May 2^nd, marking a significant step in deepening its market presence in the Middle East and Africa and another milestone in its global branding efforts. Spanning 200,000 square meters with a designed total capacity exceeding 1.5 million units, the Egypt Eco-Park's first phase has already begun trial production since March this year, including air conditioners and televisions. With the addition of washing machines starting production in May, the total capacity now surpasses 900,000 units. The ongoing second phase will focus on refrigerators and freezers among other categories.

In a strategic move to bolster its presence in the Middle East African markets, the Egypt Eco-Park stands out for its digital platform that enhances energy efficiency by monitoring and analyzing water, electricity usage meticulously, among all elements and processes within the park. By harnessing a sophisticated digital platform, the Egypt Eco-Park promises unparalleled efficiency in resource management, marking another milestone event towards global brand creation.

Further Enhancing Localization Strategy in Egypt

The Egypt Eco-Park is set to revolutionize the local economy by creating over 3,000 job opportunities. This ambitious project not only aims to nurture top-tier talent in manufacturing and management, but also promises to catalyze a smart upgrade across the entire home appliance industry chain. Leveraging geographical advantages and demographic dividends, it is poised to significantly boost economic growth in the region.

Products from the first phase of the Egypt Eco-Park are set to primarily satisfy Egyptian market demands where Haier Smart Home has already seen substantial growth before the Egypt Eco-Park's inauguration. In Q1 of 2024 alone, revenue from the Egyptian market doubled with Haier’s price index reaching above 150 – leading industry standards. Specifically high-end models, like 979 series premium washing machine, have seen sales increase by 200%, with a price index reaching up to 166.

Accelerating Leadership in Middle East & Africa

The unique lifestyle habits and appliance needs of consumers across Middle Eastern and African regions have fueled demand for differentiated products – driving performance growth for Haier Smart Home which has tripled over three years outpacing industry growth rates. For example, Haier has made washing machines that are good for washing the Abaya, a common clothing item in Saudi Arabia. These machines can wash many robes at once because they have a big drum. Also, Haier has created air conditioners that can run on generators for places in Africa where the power supply is often not reliable. These air conditioners can keep air moving over large areas even when there's no power.

A New Growth Engine for Haier Smart Home

The inauguration of the Egypt Eco-Park is poised to bolster the global supply chain of Haier Smart Home, expediting market response and substantially supporting the company's efforts in brand development in the over 2 billion-person market in the MENA region. This strategic move is expected to sustain Haier's dominance in the industry. Coupled with benefits like lower logistics costs and shorter cycle times, the strategic move has enhanced the competitiveness of its products and accelerated the improvement of overseas profitability. In the first quarter of 2024, the company achieved 4% increase in overseas revenue, with 10% growth in overseas operating profit, underscoring its sustained development and reinforcing its position as a key driver of revenue growth.

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