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TCL to increase focus on photovoltaics in Brazil

BusinessTCL to increase focus on photovoltaics in Brazil

Chinese electronics giant TCL Technology Group Corp is set to increase investment in Brazil and expand its local operations, focusing on home appliances and photovoltaics. The company aims to introduce new products to the market in July, including white goods such as refrigerators and washing machines. This move is part of a broader strategy to expand TCL’s overseas footprint and capture rising demand for high-end electronic devices in Brazil.

TCL currently has two manufacturing bases in Manaus, Brazil, where the local government has provided favorable tax policies. The annual production capacity of its TV factory reached 3 million units, while its air conditioner factory can produce nearly 1 million units each year. The company plans to leverage its local manufacturing capacity, which currently employs over 1,500 people, to expand its business in Brazil.

SEMP TCL, a joint venture established by TCL and Brazilian home appliance manufacturer SEMP in 2016, mainly targets the mid-range to high-end market in Brazil. The company has seen its sales volume and market share continuously grow, with a market share of over 16% for televisions in the first six months of 2022, up from 8.5% in 2019.

Felipe Hennel Fay, vice-president of SEMP TCL, said there is tremendous growth potential in fields like air conditioners, refrigerators, and washing machines in Brazil. Fay also emphasized the importance of green energy transition, the rapid development of the internet of things and 5G technology, as well as the exploration of development opportunities in the automobile segment.

Setting up production bases in Brazil not only brings China’s advanced manufacturing, research and development as well as management capabilities to the local market but also creates job opportunities for locals and enhances the global competitiveness of Chinese enterprises. Zhao Meimei, assistant president of Beijing-based market consultancy AVC, said enhancing global operational capacity will help Chinese high-tech manufacturing enterprises better utilize global resources and promote the upgrade of China’s manufacturing.

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