The joint venture is expected to achieve an annual revenue of about 2.26 billion yuan (US$282.5 million) on a full year basis, with a profit margin (after tax) of approximately 10 per cent.

"This joint venture will benefit from Schneider Electric's leading technical and management support and from Delixi's brand image and local roots.

"The complementary relationship between a domestic and a world-renowned enterprise will create new opportunities, contribute to the development of the Delixi brand, and propel our internationalization efforts further," Hu said.

"This transaction represents a major milestone in the development of the electrical industry in China," he added.

Russell Stocker, executive vice- president of Schneider Electric Asia Pacific Operating Division said: "This new partnership will inaugurate a new business model for Schneider Electric which will add to its existing approach to prescriptions, services and solutions.

"Indeed, Delixi Electric will market independently a very competitive offer of low voltage products, through a specific large network of retail outlets. It will offer a different value proposition from Schneider Electric with a distinct market approach."

Delixi Group is one of the local leaders in the Chinese electrical distribution field employing about 14,000 people across China. It recorded sales of 12.8 billion yuan (US$1.62 billion) last year.

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