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Koc Group’s home appliances giant Arcelik signed a licensing agreement on Wednesday with Chinese technology company Sichuan Changhong covering the global operations of its Grundig brand outside Türkiye.
Under the agreement, Changhong International Holding, a Hong Kong–based subsidiary of Sichuan Changhong, will take over production, sales and after-sales services for Grundig-branded products in most international markets, Arcelik said.
Arcelik said the exclusive licensing deal will take effect on Jan. 1, 2026, and run for three years.
The agreement may be extended for an additional two years under the same terms if both parties agree.
The deal was signed between Grundig Multimedia AG, the owner of the Grundig brand within Arcelik, and Changhong International Holding as part of an optimization strategy to focus operations in more efficient regions.
Under the licensing agreement, Changhong will have the right to manufacture, sell and provide after-sales services for selected Grundig-branded products.
In Europe, the CIS region and Asia-Pacific, the agreement covers white goods, air conditioning and consumer electronics, excluding small home appliances.
In China and Russia, the scope includes all product categories, including small home appliances.
Arcelik said the agreement applies only to markets outside Türkiye and that Grundig’s operations within Türkiye will continue unchanged.
The agreement covers a wide geographic area across Europe, Central Asia, and the Asia-Pacific.
European markets include countries such as Germany, France, Italy, Spain, the United Kingdom, Greece, the Netherlands, Poland, Sweden and Switzerland, among others.
The CIS region includes Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan and Uzbekistan.
The Asia-Pacific region includes China, Japan, South Korea, Australia, Indonesia, Vietnam, Malaysia, Thailand, the Philippines, Singapore and New Zealand.
Africa, the Americas and the Middle East are not included in the agreement.
Arcelik said that during the transition period, Grundig Multimedia AG and its subsidiaries may continue limited production, distribution and sales in some markets.
This transition will end no later than Dec. 31, 2026, in all markets covered by the agreement.
The licensing model is based on royalty payments tied to sales volumes.
Sichuan Changhong Electric Co. is one of China’s largest consumer electronics manufacturers and operates internationally under the CHiQ brand.
Changhong later expanded through partnerships with international companies such as Panasonic and became one of China’s largest television producers.
By 2004, it accounted for about 90% of China’s TV exports to the United States.
The company produces televisions, refrigerators, air conditioners, batteries and electronic components.
Changhong reported revenues of €12.4 billion in 2023 and €13.8 billion in 2024, employs more than 35,000 people and is listed on the Shanghai Stock Exchange.
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