Group Australia

Production of Electric Storage-Type Water Heaters to commence in Australia

Rinnai Australia Pty Ltd (Managing Director: Greg Ellis), headquartered in Melbourne, Australia, is a consolidated subsidiary of Rinnai Corporation, a comprehensive manufacturer of heat and energy appliances. Rinnai Australia has contracted to acquire land and buildings and in July 2016 will commence the manufacture of electric storage-type (tank-based) water heaters, with the aim of increasing market share for such products and improving total earnings.


Rinnai Australia began selling room heaters in the 1970s, and since the 1990s has gained strong growth selling gas instant-heating (tankless) water heaters. It has grown to become one of the top manufacturers in Australia’s gas appliance market. However, storage-type water heaters account for around 60% of the Australian market, so since the turn of the century Rinnai Australia has expanded its business by importing and selling electric storage-type water heaters. At one stage, the Australian government tightened regulations to restrict the installation of electric storage-type water heaters, however it relaxed those regulations in 2012. Accordingly, we forecast solid demand for storage-type water heaters in line with Australia’s growing population.


Seeking to seize upon demand for storage-type water heaters and improve earnings in light of the weak Australian dollar, Rinnai Australia contracted to acquire land and buildings for the production of electric storage-type water heaters in September 2015. It is planning the installation of production equipment with a view to the commencement of production in July 2016. At present Rinnai Australia imports and sells around 40,000 electric storage-type water heaters per year. The new production facility is planned to increase that number to around 100,000 in 2020.


■Overview of New Plant 

Address: 82-88 Mills Road, Braeside, VIC 3195
Land area: 66,400m2
Building floor space: 24,800m2
Items to be manufactured: Electric storage-type water heaters
Production capacity: 100,000 units/year
Total investment (land, buildings, equipment): Approx. AUD31 million (¥2.6 billion)
Production start: July 2016 (plan)


■Corporate Profile of Rinnai Australia

Name: Rinnai Australia Pty Ltd
Address: 100 Atlantic Drive, Keysborough, VIC 3173
President: Greg Ellis
Capitalization: AUD 2million
Annual net sales: AUD 161million (¥15.3 billion; FY2014)
Employees: 246 (as of December 31, 2104)
Main products: Instant-heating water heaters, storage-type water heaters, room heaters, solar water heating systems
Established: September 29, 1971
Equity breakdown: 100% held by Rinnai Holdings (Pacific) Pte Ltd (consolidated subsidiary)


Since its foundation, Rinnai’s corporate spirit has embodied the themes of “heat and lifestyles,” “product quality,” and “contributing to local communities.” Carrying on this spirit, we will continue developing overseas operations matched to local needs.