Growth and Diversification
By 1991, Haier had become China’s leading refrigerator manufacturer. “Now we could let our
reputation precede our new products,” said Zhang. “It was time to diversify.” Haier found two
candidates: the Qingdao Air Conditioner Factory, and the Qingdao General Freezer Factory, both
stumbling due to poor management. Haier took on the debt of each firm and retained most of their
employees. Introducing a new air conditioner type at the former and Haier worker discipline at the
latter, within one year the new divisions had transformed a deficit of RMB 15 million into profits.