TCL Forms Strategic Cooperation with ELARABY

TCLForms Strategic Cooperation with ELARABY

Win-win Collaboration Between Sino-Egyptian Giants

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Production Base Setin Egypt with Sales Expanding to Middle East and Africa

(19 May 2016, Hong Kong)  TCL Multimedia Technology Holdings Limited(“TCL Multimedia”, HKSE stock code: 01070) announced the signing of an MOU withits strategic partner ELARABY Group (“ELARABY”), the largest home applianceenterprise in Egypt. The signing ceremony was attended by Minister ofCommunications and Information Technology in Egypt Eng. Yasser El-Kady, ChiefMarketing Officer of ELARABY Mr. Mohyielden Elaraby and General Manager of TCLStrategic Customer Business Center Mr. Liang Tiemin.

As a leading enterprise in the global TV industry, TCLMultimedia ranks amongst the top three globally and No. 1 in China by shipmentvolume (source: IHS Technology, China Market Monitor and Company data). TheGroup is the only vertically integrated enterprise in China that boasts themanufacturing of display panels, modules and chips as well as product assemblyunder the same roof. Since the establishment of the first overseas TV productionbase in Vietnam in 1999, the Group has also set up production bases in Polandand Mexico, further optimising the industrial layout in European andNorth-central American markets. The Group has been committed to brandinternationalisation through cross-border acquisitions, organic expansion andother strategic planning. 

ELARABY, with over 50 years of manufacturing and salesexperience, is the largest home appliance enterprise in Egypt. It not only operatesa number of manufacturing and fabrication plants for a multitude of productssuch as LED, air conditioner, washing machine, refrigerators, householdappliances, lighting products, SMT placement, plastic parts, electroniccomponents and processed metal parts, but also has a wide sales networkstretching from traditional channels to new channels. It commands a high marketshare for home appliance in Egypt with unrivalled recognition and stays at thetop of the league table in the domestic market in terms of sales capability(source: GfK data).   

At the signing ceremony, Mr.Liang Tiemin of TCL Multimedia said, “Following this Sino-Egyptianstrategic cooperation, a joint-venture TV manufacturing plant will be set up inEgypt to tap into the broad prospect of the Middle East and African markets, amove of strategic importance to upgrade TCL’s industrial layout. LeveragingTCL’s competition edge in research and development, supply chain management anda rich portfolio of high-end products, including curved, big screen, ultra-thinand high color domain quantum dot TVs, smart TV+ system and internetoperational technologies, we will integrate our strengths with ELARABY’s manufacturingcapabilities of diversified products and its extensive sales channels torealise significant synergistic benefits for both sides.”

Driven by China’s Belt and Road initiative, the Sino-Egyptiancooperation will create enormous business opportunities. The combined potentialTV demand in Arabic, African and Mediterranean Free Trade Zone is expected toreach approximately 20 million sets per annum (source: GfK data). Seizing thisrising opportunity and responding to the national initiative, the Group will,through this strategic cooperation with the Egyptian giant, benefit from thesetting up of a new production base in Egypt and establishing TCL brandbusinesses in the Middle East and African regions. More importantly, thestrategic collaboration is supported by governments of both countries and willreceive preferential export tax rebates as incentives. 

Commenting on the strategiccooperation, Mr. Mohiyielden Elarabysaid, “We have established long-standing partnership with TCL’s TV business armand have maintained good working relationship for years. We are excited todeepen our relationship further through this collaboration and are confidentthat the strategic cooperation will expand our sales network and strengthen ourmarket presence with an increased share, bringing us mutual benefits.”

Egyptian Minister of Communications and InformationTechnology Eng. Yasser El-Kady (middle), Chief Marketing Officer of ELARABY Mr.Mohyielden Elaraby (2^nd from the left) and General Manager of TCLStrategic Customer Business Center Mr. Liang Tiemin (1^st on theright)

TCL Signed MOU with StrategicPartner ELARABY