Loewe partners with Japanese Toyoichi Group
Kronach, Germany-based Loewe Technologies and Toyoichi Tsusho, Tokyo, have agreed on a far-reaching strategic partnership.
The new partnership includes the supply of major electronic components to Loewe, as well as the setup of a just-in-time supply chain structure within Kronach.
“With Toyoichi we’ve found a reliable and financially-strong partner to further boost Loewe’s competitiveness and internationalisation,” commented Loewe’s CEO Dr. Ralf Vogt. “The newly established German-Japanese alliance complements the existing well-proven and long- standing partnerships Loewe has with Hisense and LG Display.
“Loewe will benefit hugely from the procurement power of our new partner. In addition, with direct deliveries, considerably less capital will be tied up. This approach allows Loewe, as a relatively small CE manufacturer, to be much more competitive with larger companies, and will free resources for brand building and brand communication.”
The partnership will also include the joint development of major system components for upcoming smart entertainment solutions.
As part of the partnership agreement, Loewe’s production facility in Kronach will develop into a new independent entity. This will preserve the existing expertise in the production of premium consumer electronics products and maintains Loewe’s ‘Made in Germany’ quality seal. In addition, the partnership will improve efficiencies while also growing new production orders from the Toyoichi’s network of partners within Asia, alongside contracts from regional partners within Europe.
Toyoichi’s Chairman, Yutaka Hayashi, added: “Loewe’s premium brand enjoys an excellent reputation both in Japan and elsewhere throughout Asia. For this reason, we are very much looking forward to intensifying our partnership with Loewe. The future plans of Loewe’s management together with the strategic re- organisation of the Loewe Group provide a strong platform for success.”
Since 2015, Toyoichi has, in addition to LG Display and Hisense, supplied Loewe with LCD displays.
During the next few months, both companies intend to expand this strategic partnership further to include other business areas.
The partnership is announced following the news that Loewe CEO, Mark Hüsges, has relinquished his role to become Chairman of the newly founded Loewe Advisory Board. Vogt was appointed Chief Executive Officer in January.