OREANDA-NEWS. Guandong Vanward New Electric Co., Ltd. (Vanward), headquartered in Foshan/China, and Bosch’s Thermotechnology division, headquartered in Wetzlar/Germany, have agreed to establish a joint venture that will develop and manufacture hot water products. The joint venture will be owned in equal shares by Vanward and Bosch. The transaction is subject to regulatory approvals. The financial terms of the agreement will not be publicly disclosed.

Vanward, a leading manufacturer of hot water heaters in China and a leading supplier of kitchen and bathroom appliances, and Bosch Thermotechnology, a leading European manufacturer of energy-efficient heating and hot water solutions, will contribute their comprehensive technology in the DHW segment. Bosch will transfer manufacturing lines for electric hot water storage tanks, heat pump water heaters as well as solar thermal collectors from different Bosch sites in China to two existing Vanward facilities in Foshan and Hefei, where they will be used for the joint venture.

At the end of 2016, about 1,000 former Vanward associates will start manufacturing a comprehensive DHW portfolio focusing on electric hot water storage tanks. Product distribution is scheduled to start beginning of 2017 under the Vanward and Bosch brands.

“Bosch Thermotechnology is a leading supplier of energy-efficient heating products and hot water solutions in Europe, while Vanward owns a strong position in China in terms of research and development and professional manufacturing of water heaters and heating systems. The joint venture is a win-win cooperation, and I truly believe it will drive further development of hot water products in China and global markets,” said Ye Yuanzhang, President of Guandong Vanward New Electric Co., Ltd.

“China is the world’s biggest market for water heaters, and this segment will be a cornerstone in our hot water business going forward. The joint venture of the two experienced and renowned partners Vanward and Bosch allows optimal use of R&D and manufacturing resources and creates the conditions for further growth,” said Uwe Glock, President of the Board of Management of the Thermotechnology Division.

Vanward, is the largest manufacturer of hot water heaters in China and a leading supplier of kitchen and bathroom appliance. Vanward owns seven manufacturing bases in China which accounts for an area of over one million square meters with the annual production capacity of 15 million pieces. The company has 28 industry-leading core technologies and gained more than 1,000 patens. Vanward holds the largest market share for continuous 12 years in gas water heater, and is one of the two brands in China ranking for “Global Top Ten Brands for Hot Water Heater”. Vanward has a strong network for sales with over 14,000 outlets and distributors in China, supporting customers in 57 countries and areas on six continents.

Bosch Thermotechnology is a leading European manufacturer of energy-efficient heating products and hot water solutions. In fiscal 2015, the company generated sales of about 3.3 billion euros (68 percent outside Germany) and employed approx. 13 400 people. Bosch Thermo­technology has strong international and regional brands and manufactures a diversified product range in Europe, America and Asia.