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December 15, 2003
By: Tyler Baggs
Website: http://www.water-purification-filters.com
Compare water purifiers before you buy
Ronaldsway-based STRIX is entering the water purification business through
a deal with two Chinese kitchen appliance producers.
The world's biggest maker of kettle thermostats is expecting that within
three years the new venture will add a further 10 per cent to its
sales of £80 million in 2002.
STRIX, which has a staff of around 350 people in the Island, has long-standing
links with China, where it has its greatest concentration of manufacturing
bases, employing some 600 people.
The new deal will see two of China's largest kettle makers - Eternal
and EUP - manufacturing household water purification devices based on a
STRIX design.
The products will be a launched onto the market in China in the
next few months, retailing for between $30 and $40 (£18 and £25).
STRIX said some related products may also retail in Europe. Industry
observers believe that big names such as Kenwood and Morphy Richards
could sell purification devices based on STRIX's ideas.
The two Chinese companies STRIX is working with rarely sell under their
own brands and the products are expected to retail under the brand names
of better-known businesses such as Haier and Little Swan, two large
Chinese kitchen appliance groups.
In large parts of south-east Asia, tap water is generally considered unsafe
for drinking unless purified.
STRIX chairman Eddie Davies said the devices - which look similar to
plastic kettles - will be easier to use and give purer water than most
competing appliances.
The STRIX product uses a combination of filtration and boiling, rather than
the more traditional method of purification through filters.
Mr Davies hopes the market will have hit the one million mark within
three years. STRIX will earn its revenue from the deal by selling the
electronic controls, which are based on its existing designs of kettle
thermostats, plus a new type of filter it has invented. The bulk of
the company's research and the development work is done at its
Ronaldsway headquarters.
STRIX, a private company which is 40 per cent owned by HSBC, was
established in 1981. The other shareholders are Mr Davies and the company's
founder John Taylor. Pre-tax profits for 2002 are estimated at £10
million, a rise of 30 per cent on the previous year.
The company sells in 40 countries and controls a 70 per cent share
of the worldwide market. It estimates that its products are used
one billion times every day for some 20 per cent of the world population.
The company has operations throughout the globe including Australia, North
America and Europe.
China is the world's biggest centre for kettle manufacturing.
Mr Davies said the company had set up in China for logistical reasons.
"Essentially the small domestic appliance industry has migrated to
China. Whereas say five years ago there would have been something
like five million kettles manufactured in the UK to supply the UK - now
there are probably only about two million kettles manufactured in the
UK. The other three million now come out of either Eastern Europe or China,"
said Mr Davies.
Additional News, see water distillers.
Author Notes:
Tyler Baggs contributes and publishes news editorial to http://www.water-purification-filters.com.
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