RIYADH, 29 June 2006 -- A technology-intensive baby-friendly diaper will now be produced in the Kingdom following the acquisition of Riyadh-based Gulf Hygiene Industries (GHI) by Japan's biggest manufacturer of baby care, feminine and adult disposable diapers.
A spokesman of GHI told Arab News that the deal went through with Unicharm Products Co. Ltd. acquiring a 51 percent stake in GHI valued at SR650 million. As a result of the takeover, a stretch diaper, the first of its kind in the Arab world, will be produced locally.
Saudi Arabia is one of the ten countries where Unicharm has established its presence for rolling out its product line. The GHI factory, located in the Industrial Estate in Riyadh, will manufacture stretch diapers under the brand name "Babyjoy". "They have an elastic waist, high absorbency capacity, facilitate the baby's free movement, and prevent leakage," the spokesman said.
The Japanese firm's investment in the Kingdom, which comes in the wake of its economic reforms, is deemed to be of strategic significance, since the Kingdom's estimated population of 27 million, including over 5.5 million expatriates, has been growing annually at 3.5 percent. Thus, there will be a steady demand for baby diapers.
A study of the company's profile shows that it has made strategic investments abroad ranging from the Far Eastern countries like China and Korea to Thailand, Indonesia, Malaysia, the Philippines and Singapore in the Southeast. While it manufactures baby care and feminine care products in this region, the production pattern changes in the Netherlands, where its product line also includes adult incontinence care products, reflecting the aging population of Europe. In Japan, its home base, the company has a subsidiary for the production of pet food.
The spokesman said that as a result of the acquisition, there will be a transfer of Japanese technology to the Kingdom for the manufacture of pull-up disposable diapers under the technical cooperation agreement.
By Javid Hassan
© Arab News 2006
