Japan’s leading housing material manufacturers are enhancing the business strategies for overseas markets. LIXIL Corp. expects to increase its sales sharply, advancing mergers and acquisitions of foreign-based companies. YKK AP Inc. focuses on integrating demands through the local-based strategy. TOTO Ltd. intends to boost global business operations by production reform. While the domestic market is mature, these companies aim to integrate expanding overseas markets to their own growth using their unique approaches.

LIXIL acquired 87.5% shares of the capital of GROHE Group, German-based sanitary fittings maker giant by joint investment with the Development Bank of Japan. President and CEO Yoshiaki Fujimori of LIXIL expressed his confidence to raise overseas sales to 1 trillion yen by 2020 from 40 billion-yen level in 2011. The company, aiming to become a global leader in housing and building materials industry, has announced earlier the acquisitions of several companies including Italia’s Permasteelisa, a high-end curtain wall contractor in 2011 and one of the largest manufacturers of kitchen and bath products, American Standard Brands in 2013.

A series of M&A will benefit the company increasing the expected overseas sales to 585 billion yen in Fiscal 2014. LIXIL will focus on enhancing synergetic effects with the acquired companies and standardizing human resource system.

Meanwhile, YKK AP Inc. has settled down in foreign countries such as China, US, and Indonesia, taking advantages of business know-hows gained by an affiliated company YKK during its long history. The firm has established a base in each market and has developed products meeting local needs, which contributes to steady growth of sales. China is a leading market, where YKK AP aims to raise the sales amount in 2016 by 80% from 2012 and to open 12 more offices. It targets to record as much as 89.7 billion yen overseas sales in 2016 by enhancing its brand name in targeted markets.

TOTO Ltd. decided the long-term plan for 2017, which promotes production reforms such as standardization of basic parts for its flagship products including “Washlet,” the heated toilet sheets. It aims to reduce the cost and to build a stable manufacturing and supply system. The sales amount in the end of Fiscal 2014 recorded outside the country is expected to exceed 100 billion yen for the first time in the history. All the regions, from America to Europe and Asia added good results of sales. (2014/02/26)