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LIXIL Corp. announces new operating model

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LIXIL Corp. announces new operating model

Tokyo/Luxembourg — Tokyo-based LIXIL Corporation announced a new global operating model with four core technology business units to further globalize the business. The most notable change will be the creation of LIXIL Water Technology Group (LWTG), which integrates the worldwide sanitary ware business of the LIXIL Group, including the GROHE Group and American Standard Brands, effective April 1, 2015.

This move will create a global market leader and the largest platform in the international sanitary ware market with sales of around USD 6 billion and earnings of around 10 percent operating profit, as well as some 27,000 employees, sales offices across 150 markets and about 50 production facilities globally.

David J. Haines, Chairman and CEO of the GROHE Groupwill take over as CEO of LIXIL Water Technology Group in addition to his responsibilities to date. He will be supported by a seasoned management team that includes American Standard Brands President and CEO Jay D. Gould and Gould’s leadership team.

The GROHE, American Standard, JOYOU and LIXIL/Inax brands will remain independent and their own proven management teams will continue to run their businesses and organizations. Going forward, LWTG will establish four sales territories of Japan, EMEA, the Americas and Asia with primary responsibility for the different brands. Further developments will be announced in due time.

According to Yoshiaki Fujimori, President and CEO of the LIXIL Group, “This decision strengthens our global sanitary ware business and links our leading brands in all important regions of the world into a powerful and highly efficient global unit, particularly in purchasing, production as well as research and development. We are proud to be creating a new global market leader under the leadership of David J. Haines.”

“LIXIL Water Technology Group will be the key innovative player in the sanitary industry, with strong brands and excellent positioning in a rapidly changing global market,” Haines said. “Our unique product portfolio enables us to offer complete bathroom solutions. With our internationally experienced management team, we will lock down profitable and sustainable growth and lead the consolidation drive in the sanitary industry.”

“This is excellent news for our business partners and customers across North America,” Gould said.  “The new operating model maximizes the use of great global talent, as well as investments in technology leadership and innovation.”

The LIXIL Water Technology Group is one of the most important pillars of the new structure of LIXIL, recognizing the importance of innovation and technology leadership to deliver consistent profitable growth.  Other technology business units include LIXIL Housing Technology, LIXIL Building Technology, and LIXIL Kitchen Technology.

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