The structuring process of the new company established as a result of the partnership agreement with Hitachi GLS, announced by Arçelik in December 2020, has been completed.
The new joint venture, Arçelik Hitachi Home Appliances, will play a significant role in the Asia-Pacific region and will operate to increase sales of Hitachi branded products worldwide, excluding Japan.
Arçelik and Hitachi Global Life Solutions (GLS) have finalized the establishment of their new joint venture, announced in December 2020. The new company, operating under the name Arçelik Hitachi Home Appliances, was formed by transferring 11 group companies of Hitachi GLS – two manufacturing and nine sales companies – operating abroad. The new company's operations will be managed from Bangkok, Thailand. Arçelik Hitachi Home Appliances will provide manufacturing, sales, and after-sales services for Hitachi brand home appliances such as refrigerators, washing machines, and vacuum cleaners in countries outside of Japan. The new company, in which Arçelik holds a 60% stake, will leverage the strengths of Arçelik and Hitachi GLS, such as their supply chain and technological capabilities, to establish a competitive and innovative presence in the market.
Zafer Üstüner, who has worked at Arçelik for many years and previously served as Beko's Asia Pacific Regional Manager and General Manager in Thailand, will assume the general manager position of the joint venture. Under Üstüner's leadership, the company will combine the sales networks and supply chain expertise of Arçelik and Hitachi GLS to bring Hitachi-branded products to consumers in Europe, North Africa, and other regions. Through the synergy created by Arçelik and Hitachi GLS in R&D and sustainability, the new company aims to increase its competitiveness in the regions where it operates in connected home technologies, energy efficiency, and sustainable technologies.
Fatih Kemal Ebiçlioğlu: “The new initiative offers significant and strategic opportunities to strengthen our presence in the Asia-Pacific market.”
Speaking at an online event held to mark the establishment of Arçelik Hitachi Home Appliances, Fatih Kemal Ebiçlioğlu, President of Koç Holding Durable Goods Group, said: “We have been working diligently and collaboratively with the Hitachi GLS team for months to establish this joint venture, which is a significant milestone in our global growth strategy. This new initiative offers both companies important and strategic opportunities to strengthen their presence in the Asia-Pacific market. Arçelik Hitachi Home Appliances will leverage the strong market positioning, global expertise of both companies, and Hitachi’s brand heritage to meet global and local market needs. Arçelik, which holds a significant place in the Koç Group’s globalization journey with its 12 brands worldwide and 26 production facilities in 9 countries, has added another step to accelerate its global growth strategy.”.
Arçelik CEO Hakan Bulgurlu: “This is a very important step for us on the path to achieving our global growth targets.”
“We have taken a very important step in line with our vision of becoming one of the world's leading companies in home technologies and our global growth targets. We will continue our growth in new geographies through synergies we will achieve in our product portfolio and operational aspects. By combining our strengths in innovation and R&D, we will seize the opportunity to reach a much larger consumer base in existing and new markets with a broad product portfolio and complementary technologies.”
Hitachi Ltd. President and Chief Operating Officer Keiji Kojima: “Through our collaboration with Arçelik, we will contribute to improving the quality of life for people all over the world.”
Hitachi Ltd. President and Chief Operating Officer Keiji Kojima stated: “Hitachi Group aims to contribute to the quality of life of people through its Social Innovation Unit, which works to solve societal issues. Our goal is to create a sustainable society by focusing on areas that uphold the values of 'safety and security', 'environment', and 'resilience'. The home appliance sector is strategically very important for Hitachi Group, as it is the first point of contact between our brand and people, especially now with the increasing demand for connected home appliances using digital technology. Through our collaboration with Arçelik, we will offer a safer and healthier life to more regions with Hitachi brand home appliances, contributing to improving the quality of life for people all over the world.‘
Jun Taniguchi, President of Hitachi Global Life Solutions Inc.: “We will develop products and services that will create a sustainable society.”
Jun Taniguchi, President of Hitachi Global Life Solutions Inc., expressed his belief that Arçelik Hitachi Home Appliances will gain a competitive advantage and become a leader in the global home appliance market by strengthening the complementary sales networks and product strategies of the two companies. He added, “By combining our companies” differentiating technologies, such as environmental resilience and digital technology, we will develop products and services that contribute to improving the quality of life for consumers and creating a sustainable society.”.
Arçelik Hitachi Home Appliances General Manager Zafer Üstüner: “A new and exciting journey”
Zafer Üstüner, who will serve as the General Manager of the new company, stated, “Today marks the beginning of a new and exciting journey for Arçelik Hitachi Home Appliances, established to meet the changing needs of the growing young population in the Southeast Asian market and to leverage their purchasing power. This company brings together the global strategies of both companies to accelerate growth and realize growth potential across all geographies, creating product synergies and investing in branding and promotional activities. Through our partnership, the company will also enable us to achieve significant increases in efficiency thanks to the purchasing and production synergies it gains. This new initiative leverages Hitachi GLS’s strong presence in Southeast Asia and its high-end home appliances offered in the rapidly growing Asian market to achieve success. Our teams, who have put great effort into this strategic joint venture, look forward to the growth and development of Arçelik Hitachi Home Appliances in the coming years.”.
About Arçelik Hitachi Home Appliances
Arçelik Hitachi Home Appliances was established on July 1, 2021, as a joint venture between Arçelik and Hitachi Global Life Solutions Inc. to manufacture, sell, and provide after-sales service for Hitachi brand home appliances, including refrigerators, washing machines, and vacuum cleaners, worldwide, excluding the Japanese market. Arçelik holds 60% of the shares in the new company, while Hitachi Global Life Solutions Inc. holds 40%. Through this joint venture, Arçelik A.Ş. and Hitachi GLS Inc. have also combined their strengths 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 position in the market.
About Arçelik
With over 40,000 employees worldwide, Arçelik is a multinational home appliance manufacturer operating under 12 brands (Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Altus, Dawlance, Voltas Beko). Arçelik has sales and marketing offices in 46 countries and 26 production facilities in nine different countries. The company achieved a consolidated turnover of €5 billion in 2020, making it the second largest white goods company in Europe by market share. Arçelik employs over 1,600 researchers in its R&D and design centers worldwide, holding over 3,000 international patent applications. Arçelik was named "Industry Leader" in the "Durable Home Appliances" category for the second consecutive year in the 2020 Dow Jones Sustainability Index. In accordance with the Publicly Available Specifications (PAS) 2060 Carbon Neutrality Standard, the company's production facilities worldwide achieved carbon neutrality status in fiscal years 2019 and 2020 by accumulating sufficient carbon credits.
About Hitachi GLS
Hitachi Global Life Solutions, Inc., headquartered in Tokyo, Japan, is a wholly owned subsidiary of Hitachi, Ltd. Hitachi GLS provides sales, engineering, and maintenance services for home appliances, climate control equipment, and other hardware and devices, as well as products and solutions that leverage digital technologies. Driven by the ideals of “More happiness for all,” “A more comfortable future for society,” and “Opening the doors to the future with innovations that bring happiness to the world,” it strives to better understand its customers’ lifestyles. Through products and sophisticated solutions designed with the help of the Hitachi Group value chain and digital technologies, it aims to be a company that contributes to improving the quality of life worldwide by solving each of its customers’ lifestyle challenges.
