Whirlpool buys out mainland partner in unprofitable washing machine plant
United States white goods manufacturer Whirlpool has bought out its mainland partner, Shanghai Narcissus Electric Appliances, in their unprofitable washing machine joint venture.
Whirlpool said it had agreed to buy the remaining 20 per cent of Whirlpool Narcissus (Shanghai) for US$9 million, giving it total ownership of the venture.
Shanghai Narcissus executives reportedly blamed the venture's losses for causing it to become the first company to be delisted from a mainland exchange in April last year.
New York Stock Exchange-listed Whirlpool and Shanghai Narcissus set up the venture in 1995.
Shanghai Narcissus was delisted after recording four consecutive years of net losses between 1996 and 2000.
'The unsuccessful performance of Narcissus is largely due to the unsuccessful joint venture with Whirlpool,' FinanceAsia quoted Shi Zhengming, Shanghai Narcissus vice-director of the board, as saying in an article published in April last year.
An official from Shanghai Narcissus' general office declined to comment yesterday.