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Hisense exec says Gorenje important in plans to grow

Tianjin, 19 December (STA) - Hisense, a Chinese conglomerate with global presence, says its Slovenian company Gorenje plays an important role in its plans to grow; the multinational would like to double its revenue from last year's 17 billion US dollars in five years' time.

The group's success also depends on home appliances maker Gorenje, which it took over in 2018, Gorenje CEO Lan Lin told reporters at Hisense's seat in China's Qingdao.

Having mounted several takeovers in the past, Hisense is planing to grow organically and through new takeovers, said Lan, chairman of the Hisense International board.

However, he believes Hisense would most likely have to bid good-bye to Germany's TV producer Loewe, saying its prospects in the stiff takeover battle were not great.

"But for Hisense, the German TV producer is not needed as much as Gorenje, which is indispensable because of home appliances production."

Lan reiterated that Gorenje, which will end 2019 with a loss of some EUR 40 million, would have to improve productivity.

This is what the fate of a EUR 30 million investment into a new TV factory in Gorenje's home town Velenje depends on, he explained.

He believes the next six months will be key for Gorenje, but he is optimistic the new TV factory will be built there.

In this case, Gorenje's production of refrigerators will have to be moved from Velenje to the factory in Serbia's Valjevo, which has already improved efficiency.

Hisense also plans a EUR 30 million investment in modernising Gorenje ovens, and several million euros will go into a joint IT platform for Gorenje and Hisense.

The Hisense conglomerate, which has some 90,000 employees, is one of the biggest producers of TVs and refrigerators, but also manufactures air conditioning systems, mobile phones, medical devices etc.

Lan said the group was not afraid of a potential economic crisis, noting it had enough reserves to even mount a few takeovers.

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