The Korean company Rolsen with its head office was established in 1995 by the group of Russian and Korean private persons. It produces its own-brand domestic electric appliances and also produce-to-order for Korean company LG Electronics. The company owns factories in Korea, Moscow region (Fryzino city), Voronezh (south Russia) and Lithuania. The turnover is not revealed. According to Association of trading companies and manufacturers of consumer electronic and computer equipment (RATEK) the overall capacity of Russian market of household and domestic electric appliances in 2004 has come to the amount of $8-9 billions. Rate of market growth is totaled up to 20-25% a year. Suk Joo Lee, the president of the new plant in Fryazino and Rolsen managing director for new audio project, informed “Vedomosty” that Rolsen Electronics conjointly with Korean acoustic producer Ssang Geum Co company have been started to build an acoustic system producing plant. The project cost is ?7 millions. According to Suk Joo Lee words, in the committee of directors structure will take part both Rolsen (75% share) and Ssang Geum Co (255 share) representatives. “Production facilities will reach nearly 5 millions of column loudspeakers and 1,5 million of audio system a year” – define Mr. Li. The plant launching is planed for the month of June this year. The Fryazino city official confirmed Rolsen’s expectancies to “Vedomosty”.
Electronic equipment of JG and Rolsen brands will be assembled on the new plant. LG Electronics has confirmed this information. “More then 55% from the overall capacity of items will be assembled by our request,” – tells the company representative.
Producing in Russia will help Rosen to save money on customs costs, because 80% of electronic equipment will consist of Korean components. Lee made more precise that frames will be produced on the spot and the inside elements will be bought in Korea.
Market players estimate the launch of a new plant as a right decision. Andrew Derevyanchenko, the president of “Golden-Electronics” company (producing domestic electric appliances for Vitek trade mark), values money saving at 5-10%. “Import duty for the finished acoustic system is 15% and for it’s components – 5%” – he reminds. According to estimation of Maxim Ghenke, marketing manager for audio appliances of Samsung Electronics Rus company, the Russian home theater market capacity will reach 1 million items in 2005 (rate of growth is 35%), for musical centers with DVD – 600 thousands items (10%), musical centers – 1,2 million items (5%). In Maxim Ghenke opinion, Rolsen could have problems with goods selling: “The company declares too big capacity”. But Elizaveta Totunova, PR director of “MIR” retail chain, believes that today on Russian market of home theaters is seen “the real home theater boom”. “In 2004 its sells were increased 3,5 times more owing to the fact that home theaters force out common audio systems”, - specifies Totunova.