Landmark reciprocal distribution and product development agreement reached with Vatti
AGA Rangemaster, the range cooker and kitchen living specialist, today announces that it has reached agreement on a reciprocal distribution and product development partnership with Zhongshan Vatti Gas Appliance Stock Co. Limited ("Vatti"), a leading Chinese supplier of household appliances specialising in gas hobs. This new collaboration will allow both companies to distribute each others' products in their respective geographies thereby building on their individual product and brand strengths.
A market for western style ovens in China is starting to develop. Led by the AGA Total Control cooker ("AGA TC"), the task for AGA Rangemaster's brands is to help build the market by showing the products' suitability for Chinese cooking. Under the agreement, Vatti will distribute the AGA Rangemaster brands, AGA TC, La Cornue and Rangemaster in China. Vatti plans to open a dedicated store in Beijing for AGA TC and La Cornue. Distribution of Rangemaster products will then start with the aim of creating 500 displays of Rangemaster cookers in Vatti's new dealer concept stores over the next 2 years.
Vatti is a leading gas burner technology company and is developing its range of built-in ovens. AGA Rangemaster will work with Vatti on this development programme with the objective of distributing these products in the UK and Europe.
The agreement, which is not expected to have a material financial impact in the near term, is designed to provide a continuing design and product development collaboration and to be part of the systematic growth of our international business.
William McGrath, Chief Executive of AGA Rangemaster Group plc said:
"AGA - the greatest cooker of them all - will lead our brands in showing Chinese consumers the range and flexibility of our brands. Today's signing is an important moment in the internationalisation plans we have for AGA Rangemaster. AGA TC, Rangemaster and La Cornue have the authenticity, cachet and quality to support Vatti distribution plans and in due course we hope to add Vatti built-in products to our Rangemaster and Falcon lines to complement our ranges in Europe."
Mr Huang Qijun, Chief Executive of Vatti said:
"Our research suggests the AGA Rangemaster brands will connect with the Chinese consumer, and we are delighted to be bringing them to China. The range cooker can move into the heart of the Chinese home, as it serves traditional Chinese, as well as introducing new cooking styles. We are also delighted that the evolving Vatti product range will be distributed in Europe. This is the beginning of an important relationship for us and we look forward to working with AGA Rangemaster going forward."
AGA Rangemaster and Vatti will be holding a signing ceremony at The Lincoln Centre, 18 Lincoln's Inn Fields, WC2A 3ED on the 26th July at 11am.
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William McGrath/Shaun Smith, AGA Rangemaster Group plc - 01926 455 731
Simon Sporborg/Charlotte Kenyon, Brunswick - 0207 404 5459
Notes to Editors
Vatti, founded in 1992, is a leading company in gas burner technology and makes over 1 million hobs a year for the domestic market. It is quoted on the Shenzhen Stock Exchange. It also makes built in ovens and hoods and is expanding into the kitchen cabinetry market. Growing in recent years at 20% per annum, it currently has revenues over £200 million.
Vatti were asked to design and manufacture the "Propitious Clouds" torches for the 2008 Beijing Olympic Games. It has produced torches for over 15 international events. Vatti maintains an Olympic torch collection and has 17 dating back to 1936. Vatti has brought its 1948 Olympic torch to the UK for the signing of the partnership.
More information on Vatti can be found at www.vatti-china.com
here to download a booklet produced for the event which gives
further information about Vatti, and AGA Rangemaster and the