WEINHEIM, Germany, Nov. 1, 2011 /PRNewswire/ -- According to its growth strategy Freudenberg Household Products, a company of the Freudenberg Group, Weinheim, is developing its presence on the Asia Pacific market significantly. The contract for taking over 100 percent of the operative business of Trade & Investment in Asia Limited (TIA) has been signed in the second half of October.
Freudenberg Household Products is acquiring not only a new production site in China but also the current consumer goods business and sales companies in six Asian countries with a total of 750 employees. This is a big step towards Freudenberg Household Products' target of growing its sales to more than 100 million Euro in this region by 2014. In future Freudenberg Household Products will be present in the middle price segment with the SWASH® label on top of its premium brand Vileda®.
In North America, Freudenberg Household Products is headquartered in Aurora, Ill., with additional manufacturing operations in Canada.
Since the mid nineties the brand Vileda® has been present in the Asian market with subsidiaries and organizations in China, Hong Kong, Australia, New Zealand and since 2009 via the Joint-Venture Freudenberg Gala Household Products in India. In 2010 turnover increased by 24 percent in this main expansion region. All in all the manufacturer of branded goods achieved a worldwide sales level of 677 million Euro last year.
The next cornerstone for a consistent build up of Freudenberg Household Products market presence in Asia is the acquisition of the operative business of Trade & Investment in Asia Limited (TIA), with its headquarters in Hong Kong.
On October 18, 2011 the contract between Freudenberg Household Products and the owners of TIA was signed. TIA has an actual sales volume of 20 million Euro. With the TIA-label SWASH® the company is taking over an important and highly growing brand in for Freudenberg Household Products new markets in Thailand, Malaysia, Indonesia and Taiwan, as well as in established Freudenberg Household Products -territories in China and Hong Kong. With the TIA production plant in China the Freudenberg company has access to a second production facility for household products in China.
The TIA products are completing the current Vileda® product portfolio and will continue to be distributed under the brand name SWASH® in future. All products, for example brooms and brushes, mops and plastic products will be available in about 3,000 stores all over Asia, i. e. at WalMart, Carrefour, Tesco and Metro.
The founders of TIA will stay in the Asian organization of Freudenberg Household Products in leading positions and are planning to expand the Asian brand consistently. "We want to develop the business continuously and successfully and will satisfy the current customers of TIA with first class service and in-store performance. We are glad that we could convince the executives of TIA to stay on board, also in the new constellation," says Dr. Klaus-Peter Meier, CEO Freudenberg Haushaltsprodukte and explains: "With the former President of TIA, Eric Noyel, as well as Raphael Sachs, former Executive Vice President TIA, two Top Managers with wide market and brand knowledge will contribute in our success strategy as important members of our Asian Leadership Team." Eric Noyel adds: "The two companies know and value each other since years. We are really enthusiastic to get the possibility to combine the outstanding product portfolio and the marketing strength of Freudenberg Household Products with the growing sales, customer and market knowledge of TIA on the Asian market thereby creating a market leader in this expanding region."
The business philosophy of the current TIA management is corresponding in most parts with the company culture of Freudenberg Household Products.
Under the lead of Andrew Tsang, Regional Vice President Asia/Pacific, the Integration and Leadership Team will consist of eight managers out of both companies. With the acquisition Freudenberg Household Products will employ altogether approximately 1,100 associates in Asia / Pacific (today about 350). In future three production plants in India and China including research and development centers and nine sales companies in Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Taiwan and Thailand will contribute to understand and fulfill the needs and wishes of Asian consumers.
About Freudenberg Household Products
Freudenberg Household Products (brands: Vileda®, O'Cedar®, Wettex®, Gala®), a business group of Freudenberg, is an internationally leading manufacturer of branded goods for household cloths, cleaning systems and laundry care products. The company is market leader in almost all European countries. In 2010 the business group achieved a turnover of 677 million Euro with 2,300 employees.
About TIA
Trade & Investment in Asia is a company with registered offices in Hong Kong and further countries with the brand Swash®. It produces and exports household products such as brooms, mops and brushes through a distribution network and has own sales operations in 6 Asian countries.
About Freudenberg
The Freudenberg Group is a family company offering its customers technically challenging product solutions and services. The Group is first and foremost a supplier specializing in seals and vibration control technology, nonwovens, filters, lubricants and release agents as well as mechatronic products. Consumers can find modern Freudenberg household products in the shops under the brand names of Vileda®, O'Cedar® , Wettex® and Gala®.
Freudenberg develops software solutions and IT services particularly for small and medium-size companies. In 2010, the Freudenberg Group employed more than 34,000 people in 59 countries and generated sales of more than 5.4 billion Euro. Further information on Freudenberg can be found under www.freudenberg.de.
SOURCE Freudenberg Household Products
