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Japan's LIXIL to withdraw from JV with China's Haier

Japanese housing equipment manufacturer LIXIL Group Corp. said Dec. 21 that it plans to sell subsidiary LIXIL Corp.'s 51% stake in LIXIL-Haier Housing Products (Qingdao) Co. Ltd., a joint venture with Haier Electronics Group Co. Ltd. subsidiary Qingdao Haier Kitchen Facilities Co., for 446 million Chinese yuan.

LIXIL said it agreed to sell its equity in LIXIL-Haier in order to support Haier Group's plan to strengthen its global kitchens business platform.

The transaction will see Haier Kitchen go from holding 49% of the shares to owning 100% of the JV. China-based LIXIL-Haier manufactures and sells kitchen systems under the Haier appliance brand.

The sale, which is subject to customary closing conditions and regulatory processes, is expected to be completed by March 2018, according to a Dec. 21 report in The Nikkei.

As of Dec. 21, US$1 was equivalent to 6.58 Chinese yuan.