Daelim Trading to supply two faucet models to Panasonic unit, adding W350m in annual sales

Daelim Trading, a bathroom and kitchen fixture maker, will supply two new faucet models to Panasonic Housing Solutions (PHS), the residential equipment arm of Japan's Panasonic Group. The new contracts are expected to generate annual sales of 350 million won ($254,000), broadening the company's product lineup in Japan beyond its existing basin mixer faucets to include a dedicated water purifier faucet.

Daelim Trading said Friday it has signed supply agreements with PHS for two models — the FL460 basin faucet for bathroom sinks and the FS330 under-sink water purifier faucet for kitchens — and has begun preparations for mass production. Expected annual sales from the new orders are about 230 million won for the FL460 and about 120 million won for the FS330, totaling 350 million won.

The FL460 is a single-lever faucet mounted on top of a countertop. It features a chrome finish and minimalist design developed to meet Japanese residential design and quality standards. Pre-assembly verification has been completed, and the first shipment is scheduled for December.

The FS330 is a dedicated under-sink water purifier faucet for kitchen installations. Its development draws on Daelim Trading's experience supplying water purifier faucets to Japan's Takagi and other clients. The company is currently producing the molds, with mass-production shipments targeted for May next year.

Daelim Trading's ties with Japanese housing fixture companies stretch back more than four decades. The company began a technology partnership with Japan's INAX in 1983, then started supplying Takagi in 1998 and Panasonic in 2009. Cumulative sales in the Japanese housing fixture market over the past decade have exceeded 250 billion won, according to the company.

Expanding into Japan and other overseas markets is becoming increasingly important to Daelim Trading's financial performance. The company's consolidated sales last year came to 126.2 billion won, down 7.9 percent from 137 billion won the year before. Its operating loss widened to 9.6 billion won from 3.4 billion won in the prior year.

Daelim Trading operates a building materials business centered on faucets, sanitary ware and bidet products. The company has noted in its business reports that the building materials market, including faucets, is heavily influenced by real estate and construction conditions. Its export products are sold primarily in the mid-to-high price range through original equipment manufacturing arrangements.

"Building on the quality competitiveness and customer trust we have accumulated through more than 40 years in the Japanese market, we secured this new order from PHS," a company official said. "We will proceed with the initial shipment and stable mass production, and continue to propose follow-on products for PHS's residential fixture lineup to expand our orders."