Dammam: Sanyo Electric Company Ltd. is expanding its production of air-conditioning and refrigeration products in Saudi Arabia, according to Toshimasa Iue, president of the company who is currently visiting the Kingdom.
In addition to the air-conditioning and refrigeration products, Sanyo is also promoting its environment-friendly products, such as solar products and batteries, LCD projections, digital camera, and cellular phones. "These are all in line with Sanyo's inspired vision called "Think GAIA," which is a threefold approach consisting of action on the environment, energy and lifestyle fronts," Iue said during a press briefing.During the visit of the members of the Sanyo delegation, they held talks with Sheikh Qasim Al-Arfaq, general manager of Basic Electronics Co., Ltd, the exclusive agent and distributor of Sanyo products in Saudi Arabia, regarding plans to expand and further promote Sanyo in the Kingdom.
The production of Sanyo window-type air conditioning units is done at the Al Zamil Air Conditioners Company plant at the First Dammam Industrial City under the original equipment manufacturer (OEM) arrangement. Under this labeling contract with Al Zamil Air Conditioners, a minimum production of 10,000 units per year is guaranteed.
Al Zamil will only manufacture the units, while the sales and marketing of the products will be undertaken by Basic Electronics Company, the local agent.
Sanyo's presence in the Saudi market has not been felt much because of sluggish promotion and advertising drive of the local distributor. Sanyo has been eased out of the market by newcomers in the electronic and appliance industries.
Sanyo, whose connection in the Mideast dates back over 50 years, starting in the 1950s when it exported bicycle generator lamp and washing machine, has opened a regional office in Jebel Ali Free Zone in 1997, which was followed by the setting up of the Sanyo Gulf FZE in Jebel Ali Free Zone in 2004.
The company suffered a net income loss of 205,661 billion Yen in fiscal year 2005.
However, Sanyo is forecast to recover and achieve net sales of 2,400 billion and an income of 20 billion Yen in fiscal year 2006.
By Joe Avancena
The Saudi Gazette 2006
