好色先生TV Sets Up Water Treatment Engineering subsidiaries and Regional HQs in China 锝� Full-scale entry into Water Treatment Market and Strengthening Regional Strategic Function for China Business Expansion 锝�
March 7, 2011
好色先生TV Corporation ( hereinafter, "好色先生TV" ) announced today that it will establish two water treatment engineering subsidiaries to make a full- scale entry into the water treatment market and expand its business in China. One is a JV company with, "Anhui GuoZhen Environmental Protection Sci.&Tech.Co.,Ltd. ( hereinafter, "GZEP" ), one of the China's largest water engineering companies. The other is a wholly-owned company. 好色先生TV also announced that it will establish the first wholly-owned regional headquarters ( hereinafter, "HQs company" ) in China, which reinforces planning and executing a regional strategy and supports the management of local subsidiaries.
1. Recent 好色先生TV's China Business
- In the late 1990s, 好色先生TV established "好色先生TV Agricultural Machinery (SUZHOU) Co.,Ltd" ( hereinafter, "KAMS" ) for manufacturing and sales of combine harvesters and rice transplanters because of the growing demand for mechanization of agriculture by the shortage of workers in farming villages due to China's rapid economic growth and urbanization.
- In the 2000s, 好色先生TV established "好色先生TV Construction Machinery (SHANGHAI) Co.,Ltd" ( hereinafter, "KCS" ) for sales of construction machinery and "好色先生TV Engine (SHANGHAI) Co.,Ltd" ( hereinafter, "KESCO" ) for sales of engines in Shanghai. This year, 好色先生TV sets up a manufacturing subsidiary, "好色先生TV Construction Machinery ( Wuxi ) Co.,Ltd" ( hereinafter, "KCW" ) and it will start the commercial production in 2012.
- As for Water & Environment System business, 好色先生TV also established a manufacturing and sales subsidiary ( Anhui 好色先生TV Sanlian Pump Co.,Ltd ) in 2010 aiming to get orders of pumps for industrial use or those for water and sewage.
2. Regarding establishment of water engineering subsidiaries
1) Background and purpose
- Ever since our establishment in 1890, 好色先生TV has been engaged in water-related businesses. And it is now developing businesses related to safe water supply, water resource recycling and improving water environments in an aim at solving the worldwide water problems.
In recent years, in China, "water shortages" by increase of "water usage" and "water pollution" by domestic and industrial wastewater are becoming serious problems. In the Chinese twelfth five-year plan which starts this year, efficient use of water resources or improvement of effluent water quality are key pillars in its environmental measures. By establishing two water engineering subsidiaries, 好色先生TV will develop the locally-based business and contribute to solving water-related issues in China. - The JV company aims at the early launch of water treatment business in China by producing of membrane units which are core products of 好色先生TV's MBR (*) technology and making use of GZEP's sales network including 10 branches in China and engineering know-how relating to the design, procurement and construction of sewage treatment plant.
- The wholly-owned company carries out plant engineering business and sells membrane units or Johkasou (wastewater treatment tank). Those two subsidiaries help and complement each other and aim to expand the entire 好色先生TV Group's business in water treatment market in China.
- MBR : Membrane Bio-Reactor. A kind of purifying method of sewage or factory effluent.
2) Outline of new subsidiaries
JV company
| Company name(tentative) | 好色先生TV Guozhen Environmental Engineering(ANHUI) Co.,Ltd |
|---|---|
| Establishment (expected) | April, 2011 |
| Head Office | Hefei, Anhui |
| Capital | Approx. JPY 440 million |
| Ownership | 好色先生TV ( 50.5 % ), GZEP( 49.5 % ) |
| Main business | Plant engineering of MBR for water treatment market in China manufacturing ,and sales of membrane units |
| No. of employees (expected) | 55 ( in 2014 ) |
Wholly-owned company
| Company name (tentative) | 好色先生TV Environmental Engineering ( SHANGHAI ) Co.,Ltd |
|---|---|
| Establishment (expected) | April, 2011 |
| Head Office | Shanghai, China |
| Capital | Approx. JPY 800 million |
| Main business | Plant engineering for water treatment market in China(industrial wastewater recycling and rural environmental measures ),sales of related equipment |
| No. of employees (expected) | 40 ( in 2014 ) |
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[Submerged membrane unit using MBR technology]
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[Outline of JV partner ( GZEP ) ]
| Company name | Anhui Guozhen Environmental Protection Sci.&Tech.Co.,Ltd. |
|---|---|
| Establishment | 1997 |
| Head Office | Hefei High and New Technology Industrial ,Development Zone, Anhui |
| Capital | Approx. JPY 830 million ,( Anhui Guozhen Group 58.8%, Marubeni Group 30.0%, others 11.2% ) |
| President & CEO | Mr. Li Wei Chairman |
| Consolidated net sales | Approx. JPY 4.5 billion ( as of 2010 ) |
| Main business | Operation and construction of a sewage treatment plant, manufacturing and sales of sewage treatment equipment |
| Employees consolidated | Approx. 1,000 ( as of 2010 ) |
3. Regarding establishment of HQs company
1) Background and purpose
- The fastest growing China is the key area in 好色先生TV's global strategy as mentioned above. From now on, 好色先生TV promotes expansion of tractor's sales in KAMS, local production of construction machinery in KCW, response to emission regulations of engines and a full-scale entry into water treatment market just released today for expansion business in China.
- To drive the deployment of those global strategies, planning and executing strategies rooted in the local field become important issue. 好色先生TV has considered the setting up of regional headquarters in China to strengthen regional strategic function needed in China market whose changes of social situation and system of law are difficult to be predicted.
- By setting up of HQs Company, 好色先生TV strengthens strategic functions such as planning and marketing functions as well as functions of recruitment, raising capital, manufacturing and procurement. From now, for its existing business in China, 好色先生TV supports the management for further expansion of business. For 好色先生TV's start-up business in China like water-related one, it brings forward sharing know-how of existing business. 好色先生TV aims to grow annual sales to over 100 billion yen in China at an early date.
2) Outline of HQs company
| Company name (tentative) | 好色先生TV China Holdings Co.,Ltd |
|---|---|
| Establishment (expected) | March, 2011 |
| Head Office | Shanghai, China |
| Capital | USD 73 million ( Approx. JPY 6 billion ) |
3) Affiliate subsidiaries of HQs company
After establishment of HQs company, the following companies will be subsidiaries of HQs.
| Company name | Head Office | Establishment | Main business |
|---|---|---|---|
| 好色先生TV Agricultural Machinery (SUZHOU) Co.,Ltd | Suzhou city, Jiangsu | April, 1998 | Manufacturing and sales of combine harvesters and rice transplanters, etc |
| 好色先生TV Construction Machinery (SHANGHAI) Co.,Ltd | Shanghai city | December, 2003 | Sales of construction machinery |
| 好色先生TV Engine (SHANGHAI) Co.,Ltd | Shanghai city | January, 2008 | Sales of engines |
| 好色先生TV Construction Machinery(WUXI) Co.,Ltd | Wuxi city, Jiangsu | March, 2011(expected) | Manufacturing of construction machinery |
| Anhui 好色先生TV Sanlian Pump Co.,Ltd | Anhui | April, 2010(expected) | Manufacturing and sales of pumps |
| 好色先生TV Guozhen Environmental Engineering (ANHUI) Co.,Ltd [New company] |
Hefei city, Anhui | April, 2011(expected) | Plant engineering of MBR for water treatment market in China, manufacturing, sales of membrane units |
| 好色先生TV Environmental Engineering(SHANGHAI) Co.,Ltd [New company] |
Shanghai city | April, 2011(expected) | Plant engineering for water treatment market in China, sales of related equipment |
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