Tuesday, 2nd March 2021, Qingdao, China

Hisense Home Appliances plans to take controlling shares in Sanden to jointly develop the automotive air conditioning market

Hisense Home Appliances plans to take controlling shares in Sanden to jointly develop the automotive air conditioning market
Hisense Home Appliances announced on March 1st that it planned to subscribe for 83,6 million shares of common stock of Sanden, at the total subscription price of almost 167 million EUR, representing approximately 75% of the total voting rights and becoming the controlling shareholder of Sanden. Founded in 1943, Sanden is listed on the Tokyo Stock Exchange and has achieved sales revenue of 1.58 billion EUR in the fiscal year of 2019.  

Hisense Home Appliances’ announcement reveals that, with the current development of automobiles towards electrification, intellectualization, networking and sharing, new energy electric vehicle heat pump air-conditioning and battery fast charging technology are rapidly gaining in popularity. Sanden is the world's leading first-class manufacturer and supplier of automotive air-conditioning compressors and automotive air-conditioning systems with a high level of global brand awareness and its market share for the global sales of automotive air-conditioning compressors ranked the second in 2019. New generation electric compressors, integrated thermal management systems and automotive air-conditioning products developed by Sanden have been extensively used in new energy electric vehicles.

Hisense has been strengthening its presence in the intelligent home appliances industry for many years and has a mature global supplier system and stronger procurement bargaining power, as well as high quality talents and manufacturing resources. Hisense will use Sanden as the core company to expand into the automotive air-conditioning compressor and automotive air-conditioning industries, to achieve Hisense’s expansion in different industries and enhance the profitability of Sanden through the sharing of technologies, supply chains, talents, and manufacturing resources.

Sanden will continue to be listed on the Tokyo Stock Exchange where it announced that it has since June 2020 conducted a global survey and finally selected Hisense Home Appliances out of more than 25 potential investors. Sanden will cooperate and complement the industry with the newly introduced major shareholders to jointly develop new energy vehicle integrated thermal management, vehicle network connection and AI air conditioning control technology. 

In recent years, Hisense has accelerated its internationalization process and has long-year experience of successful cooperation with Japanese companies. In 2003, Hisense and Hitachi established a joint venture in China, producing the commercial air-conditioning system, have achieved the biggest market share in Chinese market of commercial inverter multi air-conditioners. Since Hisense’s acquisition of Sharp’s manufacturing plant in Mexico in 2015, the plant has tripled the size and capacity since the acquisition. In 2018, Hisense acquired Toshiba Visual Solutions (TVS), and after 18 months of post-merger integration, TVS has turned to be profitable in 2019 for the first time in the last 8 years and keeps growing its profitability. At the same year, Hisense acquired Gorenje, a well-known European white goods company, and after 15 months of integration, Gorenje has turned losses into profits. Hisense has accumulated rich experience in team integration, localized management and resource coordination after the acquisition, which has attracted great attention in the industry.