Monday 21st March 2011 1 Comment
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Fisher & Paykel Appliances Holdings has reached agreement with 20 percent shareholder Haier for the supply of components and technology, mainly motors.
The agreement was an extension to business already conducted with Haier, a Chinese appliance giant, F&P Appliances said today.
The supply arrangement was for an initial period of three years, with provision for annual renewals for up to a further seven years.
It was anticipated the arrangement would generate revenue of about $20 million to $35 million a year, F&P Appliances said.
The arrangement included minimum agreed volumes and input cost adjustment mechanisms, and was expected to require capital investment by F&P Appliances of about $25m.
The supply of components was expected to start in early 2012.
Shareholder approval for the deal was needed under NZX listing rules as a material transaction involving a related party, unless a waiver of that requirement was obtained.