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Lixil Water Technology Group: A new global market leader to be born

* David-J-Haines_Grohe.jpgTokyo-based Lixil Corporation has this week announced a new global operating model with four core technology business units to further globalise its business. The most notable change from this new model will be the creation of Lixil Water Technology Group, which integrates the Lixil Group's worldwide sanitaryware business including the Grohe Group and the American Standard Brands, effective 1st April 2015, pending relevant regulatory approvals and internal corporate procedures.

This move will create a global market leader and the largest platform in the international sanitaryware market with sales of around USD 6 billion and earnings of around 10% operating profit, some 30,000 employees, sales offices across 150 markets and around 50 production facilities globally.
David J. Haines, chairman & CEO of the Grohe Group, will take over as CEO of Lixil Water Technology Group in addition to his current responsibilitie. He will be supported by a seasoned management team with global experience.

The Grohe, American Standard, Joyou and Lixil /Inax brands will remain independent within Lixil Water Technology Group and their own proven management teams will continue to run their businesses and organisations. Lixil Water Technology Group will eventually establish the four sales territories of Japan, EMEA, the Americas and Asia, each with primary responsibility for the different brands. Further developments will be announced in due course.

"This decision strengthens our global sanitaryware business and links our leading brands in all important regions of the world into a powerful and highly efficient global unit, particularly in purchasing and production as well as research and development," reports Yoshiaki Fujimori, President & CEO of the Lixil Group. "We are proud to be creating a new global market leader under the leadership of David J. Haines."

David J. Haines adds: "Lixil Water Technology Group will be the key innovative player in the sanitary industry with strong brands and excellent positioning in a rapidly changing global market.

"Our unique product portfolio enables us to offer complete bathroom solutions. With our internationally experienced management team, we will lock down profitable and sustainable growth and lead the consolidation drive in the sanitary industry."

Lixil Water Technology Group is one of the most important pillars of Lixil new structure, recognising the importance of innovation and technology leadership to deliver consistent, profitable growth.

Lixil Group Corporation is a listed holding company posting 1.6 trillion JPY in consolidated sales in FY March 2014. The Group is involved in a broad spectrum of housing-related businesses, ranging from the manufacture and sales of building materials and housing equipment to the operation of home centers and a network of homebuilding franchises.

Lixil Corporation, a consortium of building material companies, is a core enterprise of the Group, generating 80% of its consolidated sales. Lixil is the largest housing and building materials company in Japan with a vast business portfolio, a 55% market share in exteriors, a 50% share in housing sashes and doors, a 40% share in building sashes and shutters and a 40% share in sanitary ware. Lixil is also a leading brand in product lines such as tiles, unit bathrooms and kitchen systems.

Launched in April 2011 under its present structure and name, Lixil Corporation has been active in strategic acquisitions and partnerships in order to fortify and accelerate its growth globally. It currently operates in more than 30 countries through various brands offering a broad lineup of products and services; Permasteelisa Group is a curtain wall business leader; American Standard Brands is one of the largest primary housing equipment providers in North America; the German-based Grohe Group is a leading manufacturer and supplier of sanitary fittings, including kitchen and bathroom faucets and shower systems. Joyou, Grohe's subsidiary, covers the Chinese sanitary market and expands the brand also to other markets.

Image: David J. Haines, chairman & CEO of the Grohe Group


7th November 2014

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