Taiwan's leading faucet maker Globe Union eyes inroads into SE. Asia with Thai Kin
TAIPEI, NNA - Leading Taiwanese faucet maker Globe Union Industrial Corp. is dispersing production to Southeast Asia through a partnership with Thai furniture casting supplier Thai Kin Co., as it looks to mitigate the impact from additional U.S. tariffs on Chinese goods stemming from the trade dispute with China.
The Taiwanese kitchen and bathroom accessories maker plans to acquire a 51 percent stake in Thai Kin Co.’s subsidiary Paokin Co. for $14.8 million, while the Thai partner will inject $13.8 million in capital into Paokin, according to a filing with the Taiwan Stock Exchange on Wednesday.
Through the joint venture in Chonburi Province, east of Bangkok, Globe Union plans to manufacture and ship faucets and shower heads to the North American market in 2021, expecting to log annual sales of $50 million in three to five years, a Globe Union official told NNA on Friday.
Besides the aim to diversify production bases from manufacturing sites in China, the faucet maker’s search for more cost-effective molding materials to replace copper also led to the latest alliance.
“We wish to utilize Thai Kin’s innovative zinc alloy technologies in some of our products,” the official said.
Globe Union plans to “gradually move faucet capacity from China to Thailand to ramp up output there,” said the official, “but it will not happen very soon.”
The North American market is the largest revenue source for the Taiwanese company, with 57 percent of the total in the January-March quarter of this year, followed by 41 percent from Europe, according to its financial statement.