PR90417

ISTANBUL and TOKYO, July 1, 2021 /PRNewswire=KYODO JBN/ --

Arcelik Hitachi Home Appliances, the new joint venture will play a major role

in the Asia-Pacific region and will expand global sales of Hitachi branded

products (excluding Japan)

Today Arcelik A.ª. (ARCLK: IST) ("Arcelik") and Hitachi Global Life Solutions,

Inc. ("Hitachi GLS") announced the launch of a new joint venture company,

Arcelik Hitachi Home Appliances B.V. The new joint venture, established by

transferring 11 subsidiaries outside Japan (two manufacturing and nine sales

companies) of Hitachi GLS, is operationally based in Bangkok, Thailand. Arcelik

Hitachi Home Appliances provides manufacturing, sales, and after-sales service

for Hitachi branded home appliances (refrigerators, washing machines and vacuum

cleaners, etc.) outside Japan.

Arcelik has consistently expanded its home appliance business to 150 countries

around the world. The company has grown significantly in Europe and achieved

strong growth in South Asia over the last decade. Hitachi GLS has been

operating its home appliance business mainly in Southeast Asia and the Middle

East, where it enjoys a high-end brand image.  

Arcelik Hitachi Home Appliances, the result of the collaboration between the

two companies, will leverage their strengths such as supply chain and

technological capabilities to build a competitive and innovative offer to

market. The newly assigned CEO will be Zafer Ustuner, was the former Regional

Head of APAC and General Manager of Thailand at Beko. Under his leadership, the

new joint venture will combine the sales networks of both companies to expand

the sales regions of Hitachi brand products to Europe, North Africa and other

regions, as well as to integrate business bases such as production systems and

procurement to strengthen our competitiveness. In the field of R&D, Arcelik and

Hitachi GLS will also integrate the knowledge of both parties to create new

value such as connected home appliances.

Sustainability is at the core of both Arcelik's and Hitachi GLS's strategies.

Through their combined leadership in energy efficiency and sustainable

solutions related to the home, the partnership will increase competitiveness

around these key issues in the broader market.

Comments from Arcelik's and Hitachi GLS's leaders

Fatih Kemal Ebiclioglu, Consumer Durables Group President, Koc Holding

(Arcelik's parent company):

"We are thrilled to announce the launch of Arcelik Hitachi Home Appliances

today. For the past couple of months, we have been working tirelessly and

diligently with the Hitachi GLS team to establish this joint venture, which is

a significant milestone in our Silk Road strategy. Arcelik Hitachi Home

Appliances provides both companies with an excellent opportunity to leverage

successes in the Asia-Pacific home appliances market that holds a growing

middle-class population, emerging retail channels, increasing household income

and developing lifestyles. The company will leverage both companies' robust

market position, global expertise, and Hitachi's brand heritage to deliver

global and local market needs."

Hakan Bulgurlu, CEO, Arcelik:

"We are delighted to launch our new joint venture with Hitachi GLS, Arcelik

Hitachi Home Appliances. This is a major step for us in achieving our global

expansion ambitions and goals to become one of the world's top home appliances

companies. The venture will have the chance to utilize complementary product

portfolio and operational footprints of Arcelik. In the next few years, we will

see Hitachi brand products covering full major domestic appliance need of

customers and growing both in existing markets and new ones (geographies) by

the support of Arcelik companies."

Keiji Kojima, President and COO, Hitachi, Ltd. (Hitachi GLS's parent company):

"We are delighted to establish today this new joint venture company with

Arcelik – a company who is recognized for its high-quality products and

excellent management efficiency. The Hitachi Group aims to contribute to

people's Quality of Life (QoL) through its Social Innovation Business, which

solves social issues. Our aim is to realize a sustainable society by focusing

on areas that promote the three values of ''Security and Safety,''

''Environment,'' and ''Resilience''. The home appliances business is

strategically important for the Hitachi Group, as it is the first point of

contact for our brand with people – especially while demand for connected home

appliances using digital technology is increasing. Through this collaboration

with Arcelik, we will provide safe and secure living through Hitachi-brand home

appliances to many more regions and contribute to improving people's QoL

globally."

Jun Taniguchi, President, Hitachi Global Life Solutions, Inc.:

"Today, we are pleased to introduce Arcelik Hitachi Home Appliances - our new

joint venture company with Arcelik. I am confident that by strengthening the

complementary sales networks and product strategies of both companies, Arcelik

Hitachi Home Appliances will gain a competitive edge and become a market leader

in the global home appliances market. In addition, by combining the distinctive

technologies of both companies, such as environmental resistance and digital

technology, we will contribute to improving the QoL of consumers and develop

products and services that will realize a sustainable society."

Zafer Ustuner, CEO, Arcelik Hitachi Home Appliances:

"Today marks a new and exciting journey for Arcelik Hitachi Home Appliances,

which is created to address the evolving needs for APAC market and tap into

their economic growth. This company brings together global strategies from both

businesses, obtains product synergies, and makes a targeted investment in brand

and promotion to accelerate growth across all geographies and fulfil its growth

potential. The company will also create strong efficiency gains through new

procurement and manufacturing synergies gained from the partnership.

Additionally, the new venture leverages Hitachi GLS's strong presence in APAC

and its high-end home appliances in the rapidly growing Asian market to make

the new venture a success. Our teams have been working extremely hard on this

strategic joint venture and are looking forward to seeing Arcelik Hitachi Home

Appliances grow and develop in the coming years."

About Arcelik Hitachi Home Appliances

Arcelik Hitachi Home Appliances was established on July 1st, 2021 as a joint

venture between Arcelik A.S. and Hitachi Global Life Solutions, Inc to

manufacture, sell and provide after-sales services of Hitachi branded home

appliances including refrigerators, washing machines, vacuum cleaners globally

(outside of the Japanese market). Arcelik acquired 60% ownership in the new

company while Hitachi Global Life Solutions, Inc. continues as a 40%

shareholder of the company. Through this joint venture, Arcelik AS and Hitachi

GLS, Inc. have combined their expertise in other key areas such as R&D,

procurement and production systems to optimize the joint venture's global

supply chain and strengthen its competitive positioning in the market.

https://www.arcelik-hitachi-homeappliances.com/

About Arcelik

Arcelik is a multinational household appliances manufacturer that operates with

12 brands (Arcelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure,

Flavel, Defy, Altus, Dawlance, Voltas Beko) and employs over 40,000 people

worldwide. Arcelik's global operations include sales and marketing offices in

46 countries, and 26 production facilities in 9 countries. As Europe's second

largest white goods company by market share (based on volumes), Arcelik reached

a consolidated turnover of 5 billion Euros in 2020. Arcelik's R&D and Design

Centers across the globe, are home to over 1,600 researchers and hold more than

3,000 international patent applications to date. Arcelik is named the "Industry

Leader" in the Durable Home Appliances category for the 2nd year in a row in

Dow Jones Sustainability Index 2020 and, in accordance with PAS 2060 Carbon

Neutrality Standard, became carbon-neutral in global production plants in 2019

and 2020 fiscal years with its carbon credits.

www.arcelikglobal.com

About Hitachi GLS

Headquartered in Tokyo, Japan, Hitachi Global Life Solutions, Inc., is a wholly

owned subsidiary of Hitachi, Ltd. And Hitachi GLS is responsible for sale of

(and provision of engineering and maintenance services for) home appliances,

air conditioning equipment and other equipment and devices; and provision of

products and solutions utilizing digital technologies. Based on the idea of

"More smiles to life for one and all. A more comfortable tomorrow for people

and society. With innovations that deliver happiness to the world, we open new

doors to the future.", we seek to gain a closer understanding of customer

lifestyles. By resolving individual customer lifestyle issues, through

well-designed and sophisticated products and services utilizing of the Hitachi

Group's value chain and digital technologies, we aspire to be a company that

contributes to improving the quality of life for customers around the world.

www.hitachi-gls.com/

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Source: Arcelik Hitachi Home Appliances