Sanyo Universal Electric has sold a major stake in its refrigerator factory in Prachin Buri’s Kabin Buri district to the Haier Group, China’s leading maker of electrical appliances.
The move follows Sanyo’s decision to fix its focus on higher-margin products, including information-technology (IT) systems and commercial products like freezers, beverage coolers and open showcases. It plans to promote its corporate image as a significant player in businesses of the future, particularly IT, digital and other technology-oriented products, while gradually stepping away from high-competition and low-margin conventional home appliances.
Morimoto Isutamu, president of Sanyo’s local sales and marketing arm, Sanyo (Thailand), said Sanyo and Haier had been collaborating in China for more than five years. It was under this agreement that the refrigerator factory in Kabin Buri was transferred to Haier in April. It is also a sign of a strengthening business alliance between Sanyo Universal Electric of Japan and the Haier Group of China.
“Sanyo will transfer a stake of about 85 per cent in the Kabin Buri factory to Haier. Sanyo will own only about a 10-per-cent stake in the factory after the acquisition,” Isutamu said, adding that Haier would have complete management control of the Kabin Buri plant, which has a production capacity of about 1 million refrigerators a year. Thirty per cent of them are exported to Japan. Production technology at the refrigerator factory will remain Sanyo’s responsibility.
“In April this year, we [Sanyo] also separated from our majority-owned factory in Chachoengsao, which produces all commercial products, such as freezers, beverage coolers and open showcases, to be handled by a newly formed subsidiary named Sanyo Commercial Manufacturing Thailand. The new company will run the production of those commercial products independently,” Isutamu said.
Previously, both the refrigerator plant in Kabin Buri and the commercial product factory in Chachoengsao were operated as manufacturing units of Sanyo Universal Electric.
Isutamu said the separation would allow the new subsidiary, Sanyo Commercial Manufacturing Thailand, to contribute its full attention and business resources to the commercial-product business.
“There are many current topics in Thailand involving economics and politics,” Isutamu said. “However, Sanyo’s top management in Japan is still confident in the stability of Thailand’s economy. Sanyo has been in Thailand for almost 40 years and is planning to invest continuously in this country.”
Sanyo (Thailand) executive general manager Suphot Wiratyosin said Sanyo recently spent US$16 million (Bt533 million) to install new production machinery in the commercial-product plant in Chachoengsao. The company’s strategy is to raise the production capacity of this plant and shift production of commercial products from Japan. The factory will export Sanyo commercial products to potential markets within Asean.
“With the restructuring and new investment for Sanyo’s commercial products in Thailand, the company plans to double domestic sales of commercial products by 2008,” Suphot said.
Isutamu said Sanyo (Thailand) expected Bt2.2 billion worth of sales of this year, up from last year’s Bt2 billion. Sales have come equally from three major product categories: consumer electronics, including refrigerators, washing machines and colour television sets; digital products, including projectors, digital cameras and closed-circuit television security systems; and commercial products.
Sanyo, which is also the world’s largest manufacturer of liquid-crystal-display projectors, yesterday announced the launch of two new high-definition projectors, including one with the world’s highest light output, 15,000 lumens; and the world’s shortest-throw projector, with a video-streaming range of only 8 centimetres.
From The Nation