LIXIL Corporation Announces New Operating Model to Drive Focus and Long-Term Performance

  • Japan-based LIXIL Corporation plans to establish LIXIL Water Technology Group for its global sanitary ware business led by David J. Haines as CEO
  • LIXIL Water Technology sales will be about USD 6 billion, with earnings of around 10 percent operating profit and around 27,000 employees worldwide
  • GROHE, American Standard, DXV, JOYOU and LIXIL/Inax remain independent global brands within LIXIL Water Technology Group
  • Pending regulatory approvals, effective April, 1, 2015.

TOKYO/LUXEMBOURG (November 4, 2014) – Today Tokyo-based LIXIL Corporation announced a new global operating model with four core technology business units to further globalize the business. The most notable change will be the creation of LIXIL Water Technology Group (LWTG), which integrates the worldwide sanitary ware business of the LIXIL Group, including the GROHE Group and American Standard Brands, effective April 1, 2015.

This move will create a global market leader and the largest platform in the international sanitary ware market with sales of around USD 6 billion and earnings of around 10 percent operating profit, as well as some 27,000 employees, sales offices across 150 markets and about 50 production facilities globally.
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David J. Haines, Chairman and CEO of the GROHE Group will take over as CEO of LIXIL Water Technology Group in addition to his responsibilities to date. He will be supported by a seasoned management team that includes American Standard Brands President and CEO Jay D. Gould and Gould’s leadership team.

The GROHE, American Standard, JOYOU and LIXIL/Inax brands will remain independent and their own proven management teams will continue to run their businesses and organizations. Going forward, LWTG will establish four sales territories of Japan, EMEA, the Americas and Asia with primary responsibility for the different brands. Further developments will be announced in due time.

According to Yoshiaki Fujimori, President and CEO of the LIXIL Group, “This decision strengthens our global sanitary ware business and links our leading brands in all important regions of the world into a powerful and highly efficient global unit, particularly in purchasing, production as well as research and development. We are proud to be creating a new global market leader under the leadership of David J. Haines.”

“LIXIL Water Technology Group will be the key innovative player in the sanitary industry, with strong brands and excellent positioning in a rapidly changing global market,” Haines said. “Our unique product portfolio enables us to offer complete bathroom solutions. With our internationally experienced management team, we will lock down profitable and sustainable growth and lead the consolidation drive in the sanitary industry.”

“This is excellent news for our business partners and customers across North America,” Gould said. “The new operating model maximizes the use of great global talent, as well as investments in technology leadership and innovation."

The LIXIL Water Technology Group is one of the most important pillars of the new structure of LIXIL, recognizing the importance of innovation and technology leadership to deliver consistent profitable growth. Other technology business units include LIXIL Housing Technology, LIXIL Building Technology, and LIXIL Kitchen Technology.
About LIXIL Group and LIXIL Corporation

Led by President and CEO Yoshiaki Fujimori, LIXIL Group Corporation (TSE Code: 5938) is a listed holding company posting 1.6 trillion JPY in consolidated sales in FY March 2014. The Group is involved in a broad spectrum of housing-related businesses, ranging from the manufacture and sales of building materials and housing equipment to the operation of home centers and a network of homebuilding franchises.

LIXIL Corporation, a consortium of building material companies, is a core enterprise of the Group, generating 80% of its consolidated sales. LIXIL is the largest housing and building materials company in Japan with a vast and unique business portfolio, a 55% market share in exteriors, a 50% share in housing sashes and doors, a 40% share in building sashes and shutters and a 40% share in sanitary ware. LIXIL is also a leading brand in product lines such as tiles, unit bathrooms and kitchen systems. Launched in April 2011 under its present structure and name, LIXIL Corporation has been active in strategic acquisitions and partnerships in order to fortify and accelerate its growth globally. It currently operates in more than 30 countries through various brands offering a broad lineup of products and services; Permasteelisa Group is a curtain wall business leader; American Standard Brands is one of the largest primary housing equipment providers in North America; the German-based GROHE Group is the world’s leading manufacturer and supplier of sanitary fittings, including kitchen and bathroom faucets and shower systems. Joyou, GROHE’s subsidiary, covers the Chinese sanitary market and expands the brand also to other markets. For more information about LIXIL Group and LIXIL Corporation, please visit: http://www.lixil-group.co.jp/e/
About the GROHE Group

The GROHE Group comprises Grohe AG, Hemer; Joyou AG, Hamburg and other subsidiaries in foreign markets. The GROHE Group is the world’s leading provider of sanitary fittings. With its global GROHE brand, the GROHE Group relies on its brand values of quality, technology, design and responsibility to deliver “Pure Freude an Wasser”. With the JOYOU brand, the Group covers the fast growing Chinese market. Spearheaded by GROHE Group S.à r.l., Luxembourg, the group has a global workforce of around 9,300 people worldwide (including some 3,500 at Joyou). There are about 2,400 employees working at GROHE in Germany. The GROHE Group generated consolidated sales of €1.45 billion in 2013. The GROHE Group has three production plants in Germany as well as several plants in other markets. The company currently generates some 85% of its sales outside Germany. The GROHE Group was taken over by the LIXIL Group and the Development Bank of Japan in January 2014. The LIXIL Group is the global leader in the building materials and housing equipment industry. GROHE and Joyou remain independent within the LIXIL Group.
About American Standard Brands

American Standard Brands make life healthier, safer and more beautiful at home, at work, in the community and throughout the world. Offering total project solutions for residential and commercial customers around the world with respected brands such as American Standard®, DXV™, Safety Tubs®, Crane Plumbing®, Eljer®, Fiat® and Decorative Panels International®. American Standard Brands is owned by Lixil Corporation (TSE Code 5938), a global building products company. Learn more at www.americanstandard.com, or follow us at twitter.com/AmStandard, https://www.facebook.com/AmericanStandardPlumbing.
Media contact for LIXIL Group
Miyuki Otomo
Corporate Communication Division, LIXIL Group Corporation
Otomom1@lixil.co.jp +81 3 62688801

Media contact for GROHE Group S.à r.l.
Dr. Ulrike Heuser-Greipl, Senior Vice President Public & Investor Relations
1B, Heienhaff, L-1736 Luxembourg-Sennigerberg

Media contact for GROHE
Hering Schuppener
Unternehmensberatung für Kommunikation GmbH Berliner Allee 44 D-40212 Düsseldorf
Phone: +49.(0)211.430 79-266/-289

Media contact for JOYOU:
KIRCHHOFF Consult AG, Herrengraben 1, D-20459 Hamburg Phone: +49 (0)40 60 91 86 0

Media contacts for American Standard Brands
Jeannette Long, V.P. Brand Marketing, American Standard Brands
Nora DePalma, O’Reilly DePalma for American Standard Brands, (770) 772-4726

Media contacts for GROHE America
Cheryl Dixon, Head of Brand and Trade Marketing, GROHE America
Sarah Fletcher, Lou Hammond & Associates, (212) 891-0220