Gree seals US$2.9b supply deal

Source: Xinhua | 2017-02-22

GREE Electric Appliance plans to sign a procurement agreement with Zhuhai Yinlong New Energy to buy services and products worth up to 20 billion yuan (US$2.9 billion) annually, Shenzhen-listed Gree said yesterday.

Both parties will sign the preferential procurement deal for products and services such as intelligent equipment, molds and vehicle air-conditioners valued at 20 billion yuan in the next 12 months, Gree said.

The deal offers Gree a channel to enter the vehicle air-conditioner and related markets, analysts said.

Last year, Gree sought to buy Yinlong for 13 billion yuan, but the planned purchase failed to get shareholders’ approval.

In December, Yinlong raised about 3 billion yuan from investors, including Gree’s Chairwoman Dong Mingzhu, who personally invested 1 billion yuan in Yinlong for a 7.5 percent stake.