Haier Storms U.S. Market Extensive Product Line Now Rolling Into Major Retailers, 200-Employee Factory Opening by Millennium

Business Wire, Sept 8, 1999

NEW YORK--(BUSINESS WIRE)--Sept. 8, 1999--

In a logical step toward larger profits and future growth, Haier opened its headquarters in New York City and will begin marketing its appliance products from coast-to-coast.

The United Nations was recently host to a celebration dinner and ceremonies that officially declared Haier's presence in the U.S. At the event, Michael Jemal, President and CEO of Haier America, announced the opening of a new manufacturing plant in South Carolina to be completed around the turn of the millennium. In addition, he stated goals to expand Haier's U.S. presence new product categories for an increased market share.

Jemal was joined by Mr. Zhang Ruimin and Yang Mianmian, Chairman and Executive Vice Chairwoman, respectively, of Haier Group in China, plus Mr. Sheng Yun Qiu, Consul General of the Consulate General of the Peoples Republic of China.

"One of the aims of establishing Haier in the U.S. is to broaden our distribution network to meet the need of American consumers," Jemal said as he outlined his goals to the guests. "The new product development center in Los Angeles, the new manufacturing facility in South Carolina and our executive offices and showroom in New York City are our way of telling the industry that we are to become a major force in white goods."

Since 1994, Haier was marketing its products under several other brand names including Welbilt. Now, with seed advertising already in place, the $2 billion company will begin marketing large and compact refrigerators, chest freezers, microwave ovens, front loading automatic washing machines, front loading washer/dryers, dish washers, wine coolers, and soon, flat-screen plasma and high-definition TVs, under its own name.

As part of its plan for growth, Haier plans to open a 300,000 sq. ft. manufacturing plant in late 1999 or early 2000 outside Columbia, South Carolina in nearby Kershaw County. Construction on the $30 million plant began April 30 at a ribbon cutting ceremony attended by Governor Jim Hodge.

"Haier is not an ordinary company," said Gov. Hodge. "In fact, they are quite extraordinary because they subscribe to and are willing to play by established rules in the fiercely competitive world of appliance marketing in the United States.

"The citizens of South Carolina and Kershaw County respectfully welcome Haier America Trading to our state," Gov. Hodge added.

The plant will employ 200 people and immediately begin producing large refrigerators.

New York City Operations

Haier also recently moved into executive offices at 45 West 36th Street. Adjacent to the offices is an approximately 3,000 sq. ft. showroom complete with a selection of products that Haier markets worldwide including large and small refrigerators, large and small freezers, washers, dryers, television sets, and wine coolers, vacuum cleaners, and microwave ovens. Media tours are scheduled to begin in late September.

Advertising, Marketing, Public Relations

Haier has recently acquired the marketing services of MSA in New York City. MSA is the PR and advertising agency for Brother International Corporation, HIP Health Plans, and Pyramid Sound/Pyle Audio, among others. Jemal announced a full-scale mainstream consumer advertising campaign to begin in the 4th quarter and preceded by trade ad buys. MSA will coordinate events, conduct public relations efforts to include trade show support, and buy media for Haier.

The Haier Group is a young and rapidly developing multinational company. Since the start of operations in 1984, Haier has increased sales of household appliances at an annual rate of 82.8 percent. The company employs 20,000 people worldwide, has 18 wholly owned subsidiaries, 23 holding companies, and nine joint ventures. According to a recent survey in the Appliance Journal, Haier is the fastest growing household appliance manufacturer in the world, which includes American and Japanese companies. In 1998 alone, the Haier Group was granted 506 patents and the Haier trademark is registered in 128 countries. Haier and their products have been accepted by American distributors and consumers since 1990.