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Haier subsumes Sanyo's white goods unit

Posted: 18 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:Haier? Sanyo? white goods? Indonesian Institute of Sciences? acquisition?

According to Reuters, China-based Haier acquired Sanyo's white goods products business division last March in a $130 million deal. The acquisition included refrigerators, washing machines and other appliances in Indonesia, Japan, Malaysia, the Philippines and Vietnam.

The acquisition aims to help boost Haier's sales in Asia, including in Indonesia, according to Haier's Asia Pacific marketing director Shi Zhiyuan. However, he insisted Sanyo's technology and markets were the main factors behind the acquisition. "The Indonesian market has been positive. White good products grow about 15 percent every year in Indonesia. In 2011, Sanyo Indonesia's total revenue reached $100 million. We are certain sales will continue to grow in the upcoming years."

In Indonesia, Haier took over PT Sanyo Indonesia and PT Sanyo Sales Indonesia. Both became Haier Electrical Appliances Indonesia and Haier Sales Indonesia, respectively. "Considering how Sanyo is known in Indonesia, we will use both Haier and Sanyo brands here. The Haier brand targets middle and high-level customers, while the Sanyo products are for entry level customers," Haier Indonesia president director Yutaka Itamochi noted. He added that eventually, the brand Sanyo would be entirely replaced by Haier.

Haier Indonesia will maintain sales of existing refrigerators and washing machines under the Sanyo brand, produced at its Cikarang factory. Every year, the factory produces 600,000 refrigerators and 150,000 washing machines.

At the moment, Haier Indonesia employs 1,107 employees in two factories and 13 sales offices all over the country. The figures have included those from Sanyo's operation.

Haier aimed at becoming the number three white goods manufacturer in ASEAN in 2016, Itamochi said. In the next five years, he added, Asia Pacific sales were expected to contribute 50 percent of total global sales.

Last May, the Electronic Producers Association (Gabel) recorded that the sales of electronics in Q1 2012 outperformed the industry's target with a total value of about $731.39 million, up by 24 percent compared to the same period last year.

Commenting on the acquisition, Indonesian Institute of Sciences (LIPI) economist Latif Adam said it seemed Japanese firms had decided to go to another level by allowing foreign acquisitions to take place. "Lately, the Japanese firms consider the home appliances sector as a mature one. It means that the sector's profit level has almost reached the maximum and it's time for these companies to expand to other high technology sectors."





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