Solid Group stops selling Aiwa products

Listed firm Solid Group Inc. (SGI) has suspended the marketing and distribution of the Aiwa brand of home appliances effective July 1, 2003 as a result of the business worldwide realignment brought on by Sony Philippines’ takeover and integration of Aiwa as a second brand.

In a disclosure to the Philippine Stock Exchange, SGI said wholly-owned subsidiary Solid Distributors Inc. and Sony Philippines have agreed that the latter will now absorb the Aiwa brand, including product development and marketing support.

However, nationwide after sales support will continue to be undertaken by another SGI subsidiary, Solid Electronics Corp. SGI urged to be the exclusive Philippine marketing unit of Japan’s Sony Corp.

Meanwhile, SGI will study new business development options to optimize the use of its assets and capabilities.

Given the sluggish growth in the consumer electronics sector and the increasing volume of importation of CBU (completely built-up units) due to lowering of tariffs, SGI is seeking opportunities in broadband and multimedia businesses and other areas as part of its investment portfolio diversification strategy.

Owned by the family of Joseph and Elena Lim, SGI manufactures consumer electronic products in the Philippines carrying mainly the Sony and Aiwa brand names.

The company’s electronic export business which was undertaken by Kita Corp., a wholly-owned subsidiary, was discontinued in 2001 due to the absence of orders from its sole principal, Aiwa Co. Ltd. of Japan in the face of a global economic slowdown.

Management likewise approved a plan to dispose of all the assets of Kita Corp. and has been actively looking for buyers for these assets.