Vanward and Bosch to launch joint venture
CHINA – Guandong Vanward New Electric Co., Ltd. (Vanward), headquartered in Foshan/China, and Bosch’s Thermotechnology division, headquartered in Wetzlar/Germany, have announced that they have reached agreement to establish a joint venture that will develop and manufacture hot water products. The statement released today revealed that the joint venture will be owned in equal shares by Vanward and Bosch. The two companies have stated that the transaction is subject to regulatory approvals and that the financial terms of the agreement will not be publicly disclosed.
Vanward, who are one of the leading manufacturers of hot water heaters in China and a leading supplier of kitchen and bathroom appliances, and Bosch Thermotechnology, a leading European manufacturer of energy-efficient heating and hot water solutions, will pool together their comprehensive technology in the DHW segment. Bosch has announced that it will transfer manufacturing lines for electric hot water storage tanks, heat pump water heaters as well as solar thermal collectors from different Bosch sites in China to two existing Vanward facilities in Foshan and Hefei, which have been slated for use by the joint venture.
It is expected that around 1,000 former Vanward associates will start manufacturing a comprehensive DHW portfolio focusing on electric hot water storage tanks at the end of 2016, with product distribution scheduled to start at the beginning of 2017 under the Vanward and Bosch brands.
Ye Yuanzhang, president of Guandong Vanward New Electric Co., welcomed the joint venture, saying “Bosch Thermotechnology is a leading supplier of energy-efficient heating products and hot water solutions in Europe, while Vanward owns a strong position in China in terms of research and development and professional manufacturing of water heaters and heating systems. The joint venture is a win-win cooperation, and I truly believe it will drive further development of hot water products in China and global markets.”
On behalf of Bosch, Uwe Glock, president of the board of management of the Thermotechnology Division, declared that “China is the world’s biggest market for water heaters, and this segment will be a cornerstone in our hot water business going forward. The joint venture of the two experienced and renowned partners Vanward and Bosch allows optimal use of R&D and manufacturing resources and creates the conditions for further growth.”