Japanese-style baths destined for China

BY KAZUO TERANISHI STAFF WRITER

2011/03/10

A Housetec bathroom features a bathtub and a washing space with a shower. (Provided by Housetec Inc.)

As high-rise condo complexes sprout up in booming areas of China, a Japanese maker of bath units is set to enter the market and transform the way Chinese keep themselves clean.

Housetec Inc., a mid-ranking maker, said last week that it had reached a deal with the COZY group, the largest bath maker in China, to jointly produce and sell Japanese-style baths in China.

It aims to make Japanese-style baths a fixture in high-end homes and hotels.

It is the first such tie-up between a Japanese bath maker and a foreign maker.

Chinese bathrooms usually center on shower facilities, while Japanese baths feature a deep tub for soaking along with a separate shower.

Under the agreement, Housetec and COZY will set up a joint venture company, possibly by the end of this year, that will develop, produce and sell Japanese bath units.

An exclusive production line, based on Housetec technology, will be built in a new plant to be constructed by COZY in Suzhou, near Shanghai.

The plant will produce bathrooms for both Chinese and Japanese markets.

The two companies also plan to form a capital tie-up next fall through cross-shareholding, according to officials.

Housetec, which used to be a subsidiary of Hitachi Chemical Co., was purchased by the Japanese investment fund New Horizon Capital Co. in 2008 after the bathmaker's business performance plummeted due to its high-cost structure.