Business / Corporate

Iris Ohyama sets up Vietnam unit to expand Southeast Asia sourcing

Nna/kyodo

Furniture and household products maker Iris Ohyama Inc. has established a Vietnam unit to boost sourcing in Southeast Asia due to rising labor costs and tighter environmental regulations in China.

Iris says Iris Ohyama Vietnam Co. began operating in mid-November as its suppliers in China are gradually shifting their production to Southeast Asian countries, mainly Vietnam.

The local arm will procure furniture and household products made in Vietnam, Iris Ohyama spokesman Shinnosuke Miyagawa said in Tokyo.

In addition to nine production facilities in Japan, Iris also has many factories in China and largely relies on procurements from there for sales in Japan.

Iris, based in Sendai, also has three plants in the United States and one in the Netherlands to sell locally produced items, the spokesman said.

A plant is under construction in France for completion this month, and the company is building a factory in South Korea to be completed in January.

Iris more than doubled its group sales to more than ¥420 billion in calendar 2017 from just under ¥200 billion in 2010. It has been expanding sales by launching a series of low-priced home appliances such as television sets and LED light fixtures.

Its product lineup includes rice cookers, microwave ovens and vacuum cleaners, among other items.