- METRO Group and Foxconn Technology Group signed joint venture agreement for expansion in China
- Media-Saturn responsible for strategic leadership
- First Media Markt store expected to open in 2010
The start of Media Markt in China is sealed. At the end of last year, METRO AG and its sales division Media-Saturn signed a joint venture agreement with the Chinese partner Foxconn Technology Group to expand their reach into the Chinese market. This agreement has now also been confirmed by the supervisory boards of METRO AG and Media-Saturn, as well as Foxconn. With the entry of Media Markt into the Chinese market, METRO Group will further extend its strategic position in China. Under the joint venture agreement, METRO Group holds 75 percent of the shares and Foxconn Technology Group 25 percent. Media-Saturn will be responsible for the strategic leadership and the operations of the joint venture. As an experienced local partner, Foxconn, the world’s most trusted end-to-end green product service provider, will support Media-Saturn in its market entry.
The first Media Markt stores are expected to open in Shanghai in 2010. Further store openings also outside of Shanghai are planned for the next few years. By the middle of the decade, METRO Group sees a potential of more than 100 stores in China that will open up sizable job opportunities. China is the 17th country in which Media-Saturn will operate.
14 years after Metro Cash & Carry entered the Chinese market, now also a second METRO Group sales division expands into the world's fastest growing economy. "The Chinese market offers excellent growth opportunities for METRO Group and is of an outstanding strategic importance to us. We are excited to tap this market together with our strong joint venture partner Foxconn," said Dr Eckhard Cordes, CEO of METRO Group. "METRO Group is already very well positioned in the dynamic and growing Asian market with Metro Cash & Carry. In future, also Media Markt will offer Chinese consumers a wide and innovative product assortment and thus also contribute to safeguarding jobs in Germany."
The parties have started setting up their headquarters in Shanghai. Preparations for the first stores are well underway. The project teams are looking into the selection of suppliers and employees as well as the establishment of the operations.