European home appliance manufacturer Gorenje Group and Panasonic today announced the creation of a long-term strategic alliance that will leverage the combined strengths and capabilities of the two companies, contribute to the profitability of both partners and improve their competitiveness in Europe.
The strategic alliance between Gorenje and Panasonic will be structured around two pillars: joint R&D and sharing of selected manufacturing platforms for selected product categories (washing machines, refrigerators and built-in ovens); and the sales network and marketing know-how for distribution throughout Europe.
Panasonic will invest 10 million euros and acquire a minority interest in Gorenje; and to allow existing and new shareholders to benefit from the alliance, Gorenje will execute an equity increase and dual listing.
Mr. Laurent Abadie, Chairman and CEO of Panasonic Europe said: "Gorenje's commitment to developing innovative, design-led and high quality products make it the ideal partner for Panasonic. We are looking forward to working together to build a solid and long-term platform for growth that will propel both organizations to new strengths within the European home appliance market. By combining our complementary product and manufacturing technologies, sales channels and marketing expertise, we look forward to bringing advanced, smart and ecologically responsible appliances to consumers across Europe, including Russia, in the coming years."
Panasonic seems to gradually pulling away from unprofitable consumer electronics and wants to be number one in appliances, where it is expected to be positioned against companies like Whirlpool Corp and Electrolux.