Carrier, a part of United Technologies Corp. and one of the world’s largest provider of heating, air-conditioning and refrigeration solutions, and Guangdong Midea Electric Appliances Co., a unit of the Midea Group and the second largest residential A/C player in China, have signed an agreement to form an air-conditioning manufacturing joint venture, Foshan Midea Carrier Air Conditioning Equipment Co., in Shunde, China.

He XiangJian, chairman of the Midea Electric board, and Geraud Darnis, chairman and president of Carrier, recently celebrated the contract signing in Guangzhou. Midea and Carrier will invest 200 million Yuan (U.S. $29 million) in registered capital to establish the new company. Midea will hold a 60% stake and Carrier will hold the minority stake in it. The Midea-Carrier joint venture will produce residential and light commercial duct-free split air-conditioning systems exclusively for Carrier for the global market. The partners expect the manufacturing facility to be fully operational by the end of the year, reveals the company’s press release.

“The Midea-Carrier joint venture is a milestone in Carrier’s long and successful relationship with Midea,” said Geraud Darnis, chairman and president of Carrier. “This venture brings together the strengths of two leaders in the global air-conditioning industry.” Fang Hongbo, president of Midea Electric Co., said: “Our new JV is aimed to be a stable, long-term platform of capital, product, technical and brand cooperation and alliance between Midea and Carrier. We will take full advantage of this opportunity to draw on manufacturing, technical and management experience from both parties to accelerate the globalization of the new venture.”