Electrolux to buy US$50 M. in home appliance parts from Taiwan in 2005

Taipei, Oct. 18, 2004 (CENS)--Electrolux Group of Sweden, the world's largest home- appliance conglomerate, recently held a procurement seminar with prospective suppliers in Taiwan and is expected to procure some NT$1.7 billion (US$50 million at US$1: NT$34) worth of parts and components from the island next year.

An Electrolux procurement delegation, led by Jay Cheng, general manager of Electrolux's international purchasing office (IPO) in Asia (headquartered in Hong Kong) and comprising other IPO officials, came to Taiwan for the second time to procure needed parts and seek original equipment manufacturing (OEM) partners. The firm's first trip to the island was made late last year under the arrangement of Taiwan External Trade Development Council (TAITRA).

Electrolux's delegation plans to procure different kinds of components from the island, including molds and dies, plastic-injection parts, metal-pressing parts, die-casting parts and machining parts and components. All the parts and components procured from Taiwan will be shipped to Electrolux's over 100 overseas plants. The big-scale procurement seminar attracted over 300 local suppliers to take part in.

Electrolux held a series of activities with possible local suppliers, including procurement-policy introduction, sample-parts demonstration, finished-product demonstration, and one-by-one talks. The Swedish company also invited 50 local potential suppliers to exhibit their products at the seminars.

TAITRA said that Electrolux procures over US$2 billion worth of parts and products internationally per year. To upgrade its competitiveness, Electrolux has decided to boost the ratio of procurements from low-cost countries (LLC) to 30%, including at least US$400 million from Asia next year.

TAITRA estimated that Electrolux's move would bring at least NT$1.7 billion (US$50 million) worth of business to the island in the first year. The figure is expected to gradually expand in the future.

Electrolux Group is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chainsaws, lawn mowers, and garden tractors. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvarna.