Rheem Australia has expressed its disappointment at the Statement of Issues released on Friday (17 October) by the Australian Competition and Consumer Commission (ACCC) regarding the proposed acquisition by Rheem of the Dux hot water business.
It is crucial that Australia retains a competitive local manufacturing industry, and Rheem maintains that this means that consolidation of the local industry is inevitable.
“Today around 45 per cent of the total Australian water heater market is supplied by imports. This highlights the need for a strong local water heater industry,” says Matt Sexton, Rheem’s CEO. “Smaller, standalone local businesses are unlikely to survive in an open and competitive market such as the Australian water heater market.
“Over the past seven years Australia’s water heater industry – the country’s largest remaining appliance manufacturing industry – has undergone massive changes, with constantly changing government policies, household incentive schemes and changes to the Renewable Energy Target (RET). This has impacted business confidence in the sector.
“But despite the challenges presented by constantly changing market forces, Rheem is increasing its commitment to Australian manufacturing. Rheem will spend $60 million over the next 18 months upgrading its facilities in Sydney’s western suburbs.”