ELECTRONICS
Toshiba to be a green machine

Environment is key for Japanese giant
Toshiba has introduced its new global policy for next year - Green Innovation for a White World - aimed at doubling manufacturing efficiency for all its consumer electronics products by 2010. Toshiba has gradually adjusted production lines, including those in Thailand. Nattaphong Areekul, vice president of Toshiba Thailand, said yesterday the policy would make Toshiba the global leader in environmentally friendly and energy-saving manufacturing of consumer electronics products. The Japanese company's strategy answers the policies in many developed countries such as those in Europe where companies are limited to buying from suppliers with green products and green manufacturing processes. Nattaphong said it was difficult to come up with an investment figure for the policy adjustment because the company started the process in 1991. Also, the company cannot identify an exact investment figure for use next year because it will gradually spend to improve production lines in order to meet international manufacturing standards that might emerge in the future. Its production adjustment so far focuses on reducing six dangerous substances used in manufacturing new products to a minimum level. The six substances are mercury, cadmium, chromium, lead, polybrominated biphenyls and polybrominated diphenyl ether. The measures helped Toshiba qualify for a standard called Restriction of Hazardous Substances that Europe enforced this year. The strategy means that Toshiba faces more complicated manufacturing processes and higher production costs. The company had to hike prices but to a level that was still competitive. Nattaphong said it was hard to tell exactly how much more expensive its products are because they are so varied and competitors are many. Consumers still focus on price and ignore the risks of using products with toxic substances and the benefits of using products that conserve energy. But rising oil prices seem to have forced consumers into thinking of finding products that can save their money in all ways including oil and energy. To build awareness, the company will spend Bt400 million on corporate marketing next year. Toshiba globally has been building awareness for a time, especially after it launched "T Chang" featuring energy-saving properties in Japan last year and in Thailand this year. Its communications strategy leans to educating its dealers nationwide on the importance of environmentally friendly and energy-saving properties. On the consumer side, it places environmentally friendly logos near its products and has sales representatives explain the properties. Next year, the company will launch 150 products in three lines - home appliances, audio-visual and information technology. They are expected to help sales increase 12 per cent to Bt5 billion, while the consumer electronics market is estimated to grow by 5-8 per cent. Home appliances will continue to be the main contributor to Toshiba's sales at 55 per cent, followed by IT at 35 per cent and audio-visual at 10 per cent.
Nitida Asawanipont The Nation
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