F&P Appliances in supply deal with Haier

Fisher & Paykel Appliances Holdings has reached agreement with 20 percent shareholder Haier for the supply of components and technology, mainly motors.

The agreement was an extension to business already conducted with Haier, a Chinese appliance giant, F&P Appliances said today.

The supply arrangement was for an initial period of three years, with provision for annual renewals for up to a further seven years.

It was anticipated the arrangement would generate revenue of about $20 million to $35 million a year, F&P Appliances said.

The arrangement included minimum agreed volumes and input cost adjustment mechanisms, and was expected to require capital investment by F&P Appliances of about $25m.

The supply of components was expected to start in early 2012.

Shareholder approval for the deal was needed under NZX listing rules as a material transaction involving a related party, unless a waiver of that requirement was obtained.

Comments from our readers

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.