Chinese firm takes advantage of S. Korean financial crisis

Published on .

BEIJING -- Galanz, China's leading microwave oven manufacturer, is to more than double production over the next year in an attempt to attack rival South Korean manufacturers while they are suffering from the financial crisis in their domestic market, reports China Business newspaper.

Annual output capacity of the Guangdong-based household electrical appliance maker is expected to hit five million units this year, compared with two million in 1997. It plans to further raise its annual production to six million units by 1999 in a bid to become the world's largest microwave oven manufacturer.

Galanz company officials say that if the South Korean companies wanted to defeat Galanz, they would have to be prepared to lose several hundred million dollars.

Galanz has already managed to claim a large market share in China, partly on the back of price-cuts launched last year. At the same time, it has been busy drumming up exports: Galanz microwave ovens are now reported to occupy 20% of the market share in France.

Copyright January 1998, Crain Communications Inc.

Most Popular
In this article: