News Releases

El Araby Group
Toshiba Corporation

 

Cairo, Egypt – The El Araby Group, Egypt's leading manufacturer and reseller of audio visual and home appliances, and Toshiba Corporation (TOKYO 6502), the world-renowned Japanese electronics group, today signed a joint memorandum that will reinforce and extend their long standing partnership, and that encompasses marketing and sales and the start of cooperation in manufacturing LCD TVs in Egypt.

The signing ceremony, held today in Cairo, was attended by  H.E. Aesha Abdel Hadi Abdel Ghani, Minister of Manpower and Immigration, and other representatives from national and local government, H.E. Norihiro Okuda, Ambassador of Japan to the Arab Republic of Egypt, and other distinguished guests, including El Araby's and Toshiba's business partners and major distributors. El Araby was represented by Mr. Mahmoud El Araby, Chairman of the Board of El Araby Group of Companies and Factories, and Toshiba was represented by Mr. Masaaki Osumi, corporate senior vice president and President and CEO of Toshiba's Visual Products Company, along with other senior executives.

A New Era of Reinforced Partnership

El Araby and Toshiba enjoy a long-standing partnership dating back to the 1980s, one that includes technical collaboration in home appliances and distribution of Toshiba-branded consumer products in Egypt and other countries.

The two companies currently have a sales and marketing joint venture, Toshiba El Araby Home Appliances Marketing Company, which mainly export Toshiba's home appliances, including refrigerators and washing machines, from Egypt to African countries.

Building on more than two decades of success, El Araby and Toshiba entered into a new agreement in December last year, under which they will establish a joint venture to manufacture LCD TVs in Egypt – a JV that is expected to become one of the largest LCD TV manufacturing plants in the Middle East and Africa. The plant is also thought to be the first facility in Egypt to handle LCD panel module assembly through the production of finished products, and will contribute to the development of the LCD TV industry in Egypt and promote employment in the electronics industry.

The extended partnership represents the start of the new era of cooperation between leading electronics companies from Egypt and Japan.

"El Araby Group has established a solid market presence by marketing and supplying leading global brands to our valued customers in Egypt and neighboring countries." said Mr. Mahmoud El Araby, chairman of El Araby group. "Throughout this, Toshiba has been and will continue to be by far the most important of our partners and we have worked closely with Toshiba in building up our reputation for quality products. We are confident that this reinforced partnership with Toshiba will further elevate our capabilities to supply quality products that truly respond to the voices of customers in our markets."

This extended partnership will also support Toshiba in enhancing its leadership in the global LCD TV industry. Toshiba recorded worldwide sales of 10 million LCD TV units in FY2009, ended March 2010, and aims for sales of 15 million units this fiscal year. The Middle East and the African region is one of the main areas where the company is channeling resources and looking to boost sales, and Toshiba aims to achieve a 15% market share in the region in FY2011.

"In order to bolster sales and marketing of LCD TVs in this important market, Toshiba is unfolding a two-fold strategy: strengthening localized manufacture and supply of finished LCD TVs in the Middle East and Africa. That will allow us to meet local market requirements and offer improved cost competitiveness," said Mr. Masaaki Osumi, Corporate Senior Vice President and President and CEO, Visual Products Company, Toshiba Corporation. "Alongside that we are promoting proactive measures to reinforce our marketing and sales network. Through these efforts, we are very pleased to reinforce our collaboration with El Araby Group, our long standing and proven partner."

Outline of New Manufacturing JV and Expanded marketing tie-up

The new manufacturing JV, Toshiba El Araby Visual Products Company, will be established this January in Cairo. The company has paid-in capital of US$10 million, and construction of its manufacturing facility is now under way. Production of LCD televisions is scheduled to start in March this year. The JV's activities will range from LCD panel module assembly to the production of finished products – the first company in Egypt with this scope of production.

The new plant will have an initial production capacity of 600,000 units a year, mainly 24 and 32-inch models, and an initial workforce of about 300. As sales grow, the plant's capacity will be increased, up to 2,000,000 units a year in FY2013.

While launching the new manufacturing joint venture, El Araby and Toshiba will strengthen their existing marketing and sales collaboration, Toshiba El Araby Home Appliances Marketing Company, which currently handles Toshiba white goods, such as refrigerators and washing machines, from Egypt to African countries and rename it as Toshiba El Araby Visual & Appliances Marketing Company. The company will extend its product coverage to export Toshiba branded LCD TVs from Egypt to North African countries from March, 2011.

About Toshiba

Toshiba is a world leader and innovator in pioneering high technology, a diversified manufacturer and marketer of advanced electronic and electrical products spanning digital consumer products; electronic devices and components; power systems, including nuclear energy; industrial and social infrastructure systems; and home appliances.

Toshiba was founded in 1875, and today operates a global network of more than 730 companies, with 204,000 employees worldwide and annual sales surpassing 6.2 trillion yen (US$75 billion). Visit Toshiba's web site at www.toshiba.co.jp/index.htm.

About El Araby Group

El-Araby Group is one of the largest industrial & commercial corporations in Egypt. It is a conglomerate of seven industrial, commercial & service companies. In 2009, its Total Sales crossed 3.8 billion Egyptian Pounds, contributing significantly to the overall growth of the national economy.

El–Araby was founded in 1964, and today it is manufacturing, marketing and exporting a range of more than 345 world-first class products.  By the end of 2010, total employee numbers reached a figure of over 15,500.  Visit El Araby group's website at www.elarabygroup.com