- As part of the international growth strategy, GROHE invests in new zinc manufacturing, doubling the capacity
- More than 30 million USD invested and 800 new jobs to be created within five years
- The most sustainable plant in Southeast Asia
- Complementing recent investments in all three German factories
Beirut, December 12th, 2017: GROHE, the world’s leading provider of sanitary fittings and part of LIXIL Corporation, remains on a course of international growth and has successfully invested in its plant in Klaeng in Rayong, Thailand. As GROHE invests in new technologies, jobs and sustainability in all of its production plants, the expansion in Klaeng represents the latest in a series of investments. In the last five years, GROHE invested over 100 million USD in its five production sites and recently celebrated the expansion of the German production plant in Lahr.
Full-scale production of one-hand-mixers
The new factory building in Klaeng occupies 12,000 square meters and enables GROHE to introduce a new manufacturing technology for zinc parts. It offers space for a full-scale production of one-hand mixers and underlines the manufacturing excellence GROHE is known for: all products pass the complete value chain in-house. The manufacturing processes follows two major material streams: brass or zinc as raw material and this includes from melting the raw material, die casting, CNC machining, polishing and electro-plating to assembly of the complete finished product and shipping the products to the customer. For a smooth running of this process, the manufacturing steps are designed according to the lean principles and industry 4.0 elements that are already fully implemented.
Capacity will reach 12 million pieces each year
When the ramp-up is completed in 2021, the capacity in Klaeng will have increased to 12 million parts each year. Today, over 6 million pieces are produced in Klaeng annually. Eight hundred new jobs will be created over the coming years, raising the number of employees from currently 1,700 to 2,500 by 2021. By then, GROHE will have invested more than 30 million USD (approx. THB 1.065 billion) in this expansion and GROHE Siam will be the largest plant of GROHE.
New plant is the most sustainable of its kind in Southeast Asia
With this facility, GROHE built the most sustainable plant of its kind in Southeast Asia, achieving the DGNB silver certification for sustainable building of the German Sustainability Building Council. To save resources, for example, solar power panels have been installed on the complete roof of the building and will reduce CO2 emissions by about 1,000 tons/year. High standards relate also to the wastewater. The domestic wastewater is treated biologically and afterwards corresponds to shower-quality and is re-used for irrigation and flushing. Waste separation and a dust-collecting system are other examples for GROHE’s dedication to the environment. Sustainability is an integral part of daily business at GROHE and is firmly anchored in the brand`s DNA.
Create more capacity and continue to drive international growth forward
“GROHE is growing and with the expansion of our sites, such as here in Klaeng, we are continuing to drive this course of international growth forward”, said GROHE CEO, Michael Rauterkus, at the launch of the expanded facility in Klaeng. “Twenty-two years ago, GROHE Siam started as a small factory. Now it is one of the largest manufacturers of one-hand mixers in the world. Today we are taking our growth to the next level”, added Rauterkus.
LIXIL Corporation has made this expansion possible. By having doubled the investments since 2014 and attaching importance to strategic projects and long-term orientation, LIXIL gives GROHE the freedom to invest and to expand. Furthermore, GROHE’s integration into LIXIL has enabled it to enter the market with a series of new product categories such as their own ceramic lines, the popular shower toilet Sensia Arena and digital innovations which revolutionize the smart home market.
About GROHE
GROHE is the world’s leading provider of sanitary fittings and has a total of over 6,000 employees, 2,400 of which are based in Germany. GROHE has been part of the LIXIL Group Corporation since 2014. As an international brand, GROHE pursues the brand values of technology, quality, design and sustainability, seeking to offer the “Pure joy of water”. GROHE has been developing new product categories since its inception. This includes the GROHE Blue and Red water systems and the recently-introduced GROHE Sense water security system, which is an innovative component in the growth market of smart home technology. Innovation, design and development are closely aligned with one another and are enshrined in the German site as an integrated process. As a result, GROHE products carry the seal of quality “Made in Germany”. In the last ten years alone, GROHE has received over 300 design and innovation awards as well as several top rankings as one of “Germany’s most sustainable large brands”, confirming the success of the brand. GROHE was the first in its industry to win the German government’s CSR prize and was also featured in the renowned Fortune® magazine’s ranking of Top 50 that are “Changing the World”.
About LIXIL Corporation
LIXIL is a global leader in the housing and building industry. Our unique portfolio spans everything from technologies that revolutionize how we interact with water in our daily lives, to a full lineup of products and services for houses and major architectural projects. Delivering core strengths in water, kitchen, housing, and building technologies, our brands including LIXIL, INAX, GROHE, American Standard, and Permasteelisa are leaders in the industries and regions in which they operate. LIXIL operates in more than 150 countries and employs more than 70,000 people, bringing together function, quality, and design to make people’s lives better and more delightful – wherever they are. Learn more at www.lixil.com, facebook.com/lixilgroup and www.linkedin.com/company/lixil-group.