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Yamaha Livingtec Corporation, Air Water Living Inc. Tie Up on Manufacturing, Sales, Distribution and Application of System Bathrooms for Home Use.
- Product consolidation, development and restructuring to be completed within 3 years -
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Hamamatsu, November 6, 2002 - Yamaha Livingtec (YLT) and Air Water Living (AWL) have reached agreement on a comprehensive business tie up associated with the manufacturing, sale, distribution and application of system bathrooms for home use, in order to strengthen their system bathrooms business and to improve readiness for reform.
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| Goals of the Business Tie-Up: |
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Yamaha Livingtec and Air Water Living have agreed on comprehensive business ties in order to improve recognition in the bathroom reform business and house equipment business in general, and to provide products and services suited to customer needs. The move follows careful consideration of the severe situation in the house equipment business. Each company will bring different strengths to the partnership.
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Details of the tie up are as follows:
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| 1) |
To consolidate mid- to high-class products for system bathrooms for houses and products for apartments.
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| 2) |
To improve production efficiencies by specifying and integrating each production plant's role
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To reduced distribution costs by co-managing the depot (relay consolidating stations)
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To strengthen sales activities by co-utilizing each other's strong departments (YLT's show room function and AWL's application function)
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The new company will also potentially enter into the welfare and health-related businesses.
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The details of the business tie-up are expected to be confirmed during an intensive planning period over the next six months to one year. Production plants will be re-structured by the end of 2003, a part of the product line-up will be consolidated and new products will be available for sale (under different brand names) by the end of 2004 and the business will become completely operational by the end of 2005.
The tie-up will enable the companies to produce over 70,000 system baths for houses and will position the companies as number four in the system bath industry. Additionally, over 100,000 bath units will be produced in the bathroom unit industry as a whole, resulting in economies of scale in mass production, development, mold production, purchase of raw materials, delivery, application and sales promotions.
AWL will be able to utilize YLT's showrooms and therefore will be able to present total house equipment such as kitchen equipment, wash basins, water heaters, etc. YLT will benefit from cost savings, expansion of the market, obtaining application know how and strengthening other capabilities. This particular tie-up is believed to benefit each company in a balanced way.
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Details of the Tie-Up
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| 1) |
Production Development
Integrate mid and high class product lines. By combining YLT's design, material, and functionality with AWL's design and application technologies the companies will co-develop high added value products with more ability to respond to reform needs.
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| 2) |
Production and Distribution
Each production plant will have different roles and be integrated to consolidate medium to high quality system bath production. Thus, material and component purchase, rationalization of production line and improvement of efficiency and cost saving will be realized. In addition, green container transportation methods will be installed. Distribution system including depot will be consolidated and re-assessed, which will improve efficiency of distribution and delivery.
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Sales and Distribution
Mid to high-class system baths will be sold by AWL and YLT with each company's brand name. AWL will utilize YLT's showrooms and will provide total solutions to customers including Yamaha brand kitchen, washbasin and oil-fired boiler.
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Application and After Service
YLT will refer to AWL's know how and systems in order to strengthen distribution and application structure. The two companies will consolidate operating systems to build detailed and efficient application and service structures to match customer needs.
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Company profile
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| Company name |
Air Water Living Inc. |
Yamaha Livingtec Corporation
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| Location of head office |
1274-1 Moto-Yoshida-cho, Mito, Ibaragi |
1370 Nishiyama-cho, Hamamatsu, Shizuoka
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| Representative Director |
Takashi Izumida |
Makoto Araie
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| Establishment |
April, 1999 |
October, 1991
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| Capital Stock |
1 Billion Yen
Air Water's 100% subsidiary |
4.5 Billion Yen
Yamaha's 100% subsidiary
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| Number of employees |
300 |
1,000
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| Sales Offices |
7 sales departments, 25 sales offices
(2 show-rooms) |
1 branch office, 12 branch shops, 47 sales offices (31 show-rooms)
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Annual Sales
(2001) |
13.3 billion yen |
46.2 billion yen
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| Products |
System bath for houses
Unit bath for appartments
Unit bath for various purposes
System baths with floor expansion
Shower unit
Toilet unit
Kitchen, water basins etc. |
System bath
System kitchen
Rooms system (lavatory and bathroom consolidated system, system toilet)
Water basin
Building material
Boiler (water heater)
Furniture
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For more information, please contact
Yamaha Corporation
Public Relations Division
Corporate Communication Group
TEL. +81-3- 5488-6601
FAX. +81-3-5488-5060
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