Japan’s Noritz to take 44% of Vietnam’s Kangaroo brand home appliance maker
HANOI, NNA - Japanese water heater supplier Noritz Corp. has agreed to take over a 44-percent stake in a Vietnamese home appliance maker to expand its product line and to tap the potential of the Southeast Asian market.
Noritz will make Vietnam Australia Refrigeration Electrical Engineering Group Joint Stock Co. – with revenue of about 10 billion yen ($91.07 million) in Hanoi – its affiliate company for an undisclosed sum in a deal closing in July, a spokesman at Noritz told NNA on Friday.
The Japanese water heater maker expects the deal to allow expansion of the product lineup to include a water filter and home appliances and to help the Vietnamese company expand into other Southeast Asian markets, the spokesman added.
Vietnam Australia Refrigeration Electrical Engineering, established in 2003, commands a 40 percent share of the water filter market in the domestic market, he said. It is known for the Kangaroo brand.
“We’re positioning Southeast Asia as a critical region to cultivate, given the size of the market and economic growth,” Noritz said in a statement released on Thursday.
Up until now, Noritz has focused on China in its overseas business. Weak Chinese demand weighed down its earnings from that country, however. Operating profit in 2019 slid to 420 million yen, down from 2.02 billion yen in the previous year on revenue of 37.9 billion yen, down from 42.5 billion yen during the same period.