Unix Electronics signs expansion deal

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Unix Electronics signs expansion deal

Unix Electronics, a manufacturer of small electronic household appliances, signed a contract yesterday to expand its operations with Farouk Systems, a U.S.-based company that makes professional hair care and spa products. According to the agreement, signed in Seoul, Farouk will invest $11 million in Unix, which amounts to 30 percent of Unix’s shares. Farouk has a distribution network covering 63 countries. Since it was established in 1978, Unix has produced various small household appliances such as hair dryers and vacuum cleaners. It hopes to amass 50 billion won ($44.8 million) in sales this year. The two companies will jointly establish factories in six countries― Mexico, Brazil, Dubai, Iraq, Jordan and China― over the next two to three years. The plant in Mexico, which will produce 500,000 units annually, will begin construction in the first half of next year and will mark the start of Unix’s operations abroad. Unix will oversee product design, production and research, and Farouk will take care of distribution, sales and marketing. Since 2002, Unix has been producing a brand called CHI for Farouk through original equipment manufacturing, which is distributed around the world. It will continue to produce that brand abroad for now, and then gradually create independent brands. “This strategic alliance will have export effects of 60 billion won,” said Lee Choong-gu, president of Unix Electronics. “Using Farouk Systems’ global distribution network, we will try to raise our status as an international hair and beauty equipment brand. Before, we couldn’t dream of entering markets in South America or Africa on our own. “Although we are just a small company, we have attracted such a large investment thanks to our personnel, which actively scouted from large companies. I regret that I haven’t been able to pay the staff as much as they deserve, but now that the company is expanding, we can share our accomplishments,” Mr. Lee said. by Lee Hyun-sang, Wohn Dong-hee
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