Hoshizaki makes two foodservice equipment import/sales companies in the Philippines subsidiaries

Strengthening the sales structure in the growing Philippines market, and expanding sales channels

HOSHIZAKI CORPORATION (Head office: Toyoake City, Aichi; President & CEO: Yasuhiro Kobayashi; hereafter “Hoshizaki”) completed the acquisition of shares of two foodservice equipment import and sales companies in the Republic of the Philippines (hereafter “Philippines”) on May 29th (local time) and made them subsidiaries. Hoshizaki aims to strengthen its sales structure in the Philippines, where the market has a high potential for growth, and expand its sales channels in the country.

Two companies become a subsidiary through Southeast Asia regional headquarters

Through HOSHIZAKI SOUTHEAST ASIA HOLDINGS PTE. LTD. (hereafter “Hoshizaki Southeast Asia”) (Head office: Republic of Singapore; Representative: Seigo Saifu), a subsidiary of Hoshizaki and its Southeast Asia regional headquarters, Hoshizaki acquired 100% of the outstanding shares of TECHNOLUX EQUIPMENT AND SUPPLY CORPORATION (Head office: Manila, Philippines; Representative: William A. Stelton, hereafter "Technolux") and 80% of the outstanding shares of HKR EQUIPMENT CORPORATION (Head office: Manila, Philippines; Representative: Krister Alexander V. Stelton, hereafter "HKR Equipment").

Strengthening the business structure in Southeast Asia

Hoshizaki is working to expand its business area in the Philippines and Southeast Asia, where the markets have a high potential for growth, with the aim of increasing sales and market share overseas, which will be the core of future growth.

In 2017, Hoshizaki established HOSHIZAKI PHILIPPINES CORPORATION (Head Office: Manila, Philippines) as a local subsidiary in the Philippines, and is working to expand sales of the Hoshizaki Group products in the Philippines. In Southeast Asia, in order to maximize synergies within the region, in July 2023, Hoshizaki Southeast Asia was established to supervise local subsidiaries in six countries: the Philippines, Singapore, Indonesia, Thailand, Malaysia, and Vietnam. In the same month, with the aim of strengthening the service system in the region, Hoshizaki established a Southeast Asia Service Center in Thailand, and is providing training for Hoshizaki engineers and service staff at distributors and repair contractors in the region.

The foodservice market in the Philippines is expected to grow

The real GDP growth rate of the Philippines in 2023 is 5.6%^*1 compared to the previous year, and growth is expected in the future. Although the land area is about 80% of Japan, it consists of 7,641 islands^*2, so it is essential to collaborate with companies that already have a local base to expand business opportunities.

According to a report by the U.S. Department of Agriculture's Foreign Agricultural Service^*3 released in October 2023, sales of consumer foodservices are expected to increase by 20% year-on-year in 2023 due to the recovery of the tourism and hotel industries, and recover to pre-COVID19 levels by early 2024.

Import and sales company of foodservice equipment with many achievements in the Philippines

Technolux and HKR Equipment Corporation are both leading import and sales companies in the Philippines, previously owned by the holding company Techno Holdings. These companies handle a wide range of products from prominent food service equipment manufacturers outside the country and excelled in after-sales service and equipment maintenance. While Technolux has a track record of delivering products to hotel chains and restaurant chains, HKR Equipment mainly sells products to major restaurants, and both companies provide products tailored to the customer.

Hoshizaki Philippines provides products and services through local sales and repair dealers, and has done business with both companies. Through the consolidation of the two companies, Hoshizaki strives to leverage the extensive networks of the companies within the Philippines to expand the sales of Hoshizaki products. Hoshizaki will share its know-how in the after-sales service business of both companies to increase added value and strengthen our service system in the Philippines.

Hoshizaki will continue to expand its business in the Philippines and Southeast Asia together with the experienced management teams of the two companies that knows the market well.

About Technolux

Established in April 1975. A foodservice equipment import distributor with a track record of numerous deliveries to hotel chains and foodservice chains in the Philippines. The company also sells laundry equipment and tableware, to provide a complete set of products. Sales in 2022 were 1,555.9 million pesos (4,123.3 million yen ^*4). The company has approximately 390 employees.

About HKR Equipment

Established in July 1993. A foodservice equipment import distributor that mainly sells individual products, mostly to major restaurants in the Philippines. Sales in 2022 were 812.7 million pesos (2,153.6 million yen ^*4). The company has approximately 150 employees.

*1 According to the Philippine Statistics Agency

*2 According to the website of the Ministry of Foreign Affairs

*3 According to “Philippines: Food service - Hotel Restaurant Institutional” by the Foreign Agricultural Service, United States Department of Agriculture

*4 Converted at 1 Philippine pesos equals 2.65 yen