TOTO Invests 560 Million Yuan To Build A New Factory With 51.9% Of Its Business In Mainland China
TOTO announced on December 1 that its subsidiary in Vinh Phuc Province, Vietnam (TOTO VIETNAM CO., LTD.) will invest approximately 10 billion yen (560 million yuan) in the construction of a hardware and sanitary ware factory. Construction will begin in January 2022, and the plant is scheduled to start operation in March 2024. Demand for faucet fittings and other items is growing due to the global pandemic’s increased demand for health and hygiene.
According to the announcement, the plant uses photovoltaic solar power generation as well as waste heat to reduce CO2 emissions. The wastewater generated during the hardware plating process is recycled and reused for plating, reducing the burden on the environment.
The plant covers an area of approximately 100,000 square meters and has an annual production capacity of approximately 1.2 million faucet parts, producing countertop faucets and bathtub faucets, mainly induction faucets and general faucets, to provide capacity support for the U.S. and China as important hardware and sanitary ware production base.
TOTO said the project is being implemented as part of a 56 billion yen investment plan for overseas residential equipment business in fiscal 2021-2023. At the same time, TOTO announced its interim report (April 1, 2021 to September 30, 2021), which showed revenues of 309.5 billion yen, operating income of 26.6 billion yen and net profit attributable to shareholders of the parent company of 19.9 billion yen for the first half of the fiscal year 2021.
Among them, the revenue share of mainland China reached 51.9%, followed by the Americas market 26%, Asia 18.9% and Europe 3.2%.
TOTO expects full-year fiscal year 2021 revenue of 650 billion yen, operating income of 50 billion yen and net income attributable to shareholders of the parent company of 37.5 billion yen.