Midea Group Co., a major Chinese home appliance maker and owner of German industrial robot manufacturer Kuka AG, is wading further into the auto industry by producing components for electric vehicles.
A Midea plant in the east China city of Hefei this week launched output of key EV components such as electric motors and compressors, and electronic water and oil pumps, the company said.
Midea has already signed up state-owned automaker Dongfeng Motor Group and two domestic EV startups -- WM Motor and HiPhil -- for the components, according to information disclosed Wednesday.
Midea acquired Kuka for 29.2 billion yuan in 2017. It booked a net profit of 27.2 billion yuan ($4.2 billion) on revenue of 284.2 billion yuan in 2020.
The company, based in Foshan and listed on the Shenzhen Stock Exchange, is the latest of China’s home appliance makers to diversify into the auto industry.
In March, Haier Group Corp., another home appliance giant in China, signed a strategic partnership with state-owned automaker SAIC Motor Corp. to jointly develop lightweight materials and technology for intelligent vehicles as well as smart homes.