OSAKA -- Sanyo Electric Co. said Tuesday it has signed a wide-ranging business tieup with Haier Group Co., China's largest home appliance manufacturer.

The agreement is aimed at marketing consumer electronic products in each other's countries.

"By joint efforts, we hope to create a standard for Asia," Sanyo Chairman Satoshi Iue said at a news conference.

It is the first time that Japanese and Chinese electronics companies have agreed on inclusive collaboration, the Osaka-based company said.

Under the agreement, Sanyo's products will be sold in China through Haier's sales network under Sanyo and Haier brand names, while sales of Haier's products in Japan will be promoted by a joint venture to be set up by the two companies.

The new company, to be called Sanyo-Haier Co., will be established Feb. 1 with capital of 500 million yen, owned 60 percent by Sanyo and 40 percent by Haier.

The company will start operations in April, and initially sell Haier refrigerators, freezers and washing machines.

It is the first time that a Japanese electronics company has set up a firm in Japan to promote Chinese products, according to Sanyo.

Sanyo and Haier will also cooperate in production. A factory to build compressors using Sanyo technology will be built next to Haier's refrigerator factory in Qingtao.

Production will begin in December with an initial production target of 1 million units annually. The target will be raised to 2 million units in the near future.

Sanyo will also supply Haier with technological knowhow, the company said.

Haier, set up in 1991, had sales of around 609 billion yen in fiscal 2000. Its total workforce stands at about 30,000.

Alps to close plant

Alps Electric Co. said Tuesday it will close its system device plant in Morioka, Iwate Prefecture, as part of a restructuring plan.

The April 1 closure stems from slack business in the electrical components industry, the machinery maker said.

The company said it will adopt an early retirement program from Feb. 18 to March 15 under which it will offer up to 24 months of basic wages in addition to the usual retirement package. Employees aged 35 or over will be eligible for the program, it said.

In addition, the company will implement salary cuts of between 15 percent and 20 percent for executives.

Meanwhile, the company narrowed its consolidated net loss forecast for 2001 to 3 billion yen from the earlier outlook of a 6 billion yen net loss, projected Nov. 7, thanks to 6.6 billion yen in extraordinary profits due to a settlement package in the Princeton bond scandal.

The company also raised its consolidated pretax profit forecast to 3 billion yen, up from the earlier outlook of zero, on sales of 510 billion yen, up 2 percent from the previous forecast.