Chinese appliance and electronics manufacturer Haier, Qingdao, China, will acquire a 20 percent stake in Fisher & Paykel, Wellington , New Zealand , as part of F&P’s recapitalization plan, which also includes a rights issue and establishment of new credit lines. F&P had posted sharp losses over the previous year due to declining sales and had acquired significant debt as a result of shifting manufacturing operations to lower-cost countries.

As part of the deal, Haier will take two seats on F&P’s board after the investment. The companies have also agreed to cooperate in product development, sourcing, manufacturing, and marketing activities. The companies also gain exclusive distribution rights for each other’s products in their respective home markets.

F&P said that the deal is unlikely to affect its existing relationship with Whirlpool, which includes several product and sales arrangements.

Haier is reported to be the world’s fourth largest home appliance manufacturer and employs more than 50,000 globally. The agreement with F&P helps with two of Haier’s objectives, increasing its global presence and furthering its expansion into higher-end premium appliances.