Schneider enters Chinese JV

Schneider Electric has signed an agreement with China’s Delixi Group to form a joint venture dedicated to the manufacturing, marketing and distribution of low voltage products. Delixi Group is one of the local leaders in electrical distribution employing about 14,000 employees across China.

This new joint venture will be named Delixi Electric and will be incorporated in Wenzhou, Zhejiang province once regulatory approvals are satisfied. Schneider Electric will own a 50% interest in the company while Delixi Group will hold the other 50%.

According to Schneider, the joint venture will focus on addressing Chinese market needs, and, through an exclusive relationship with Schneider Electric, will also expand its business model into other targeted countries.

In 2007 the joint venture is expected to generate pro-forma revenues of around €220m with an EBIT margin of approximately 10%. It will employ around 4,000 people.