Leviton set to assess manufacturing move

Hardware giant is giving thought to local manufacturing base, says COO.

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By  Administrator Published  October 22, 2008

Expansive electrical and network solutions vendor Leviton is considering the possibility of manufacturing products in the Middle East, its chief operating officer has revealed during his visit to GITEX Technology Week.

The North American hardware colossus is currently preoccupied by the launch of its first Middle East office, but admits it has already given thought to the benefits of local assembly once it has established a solid regional base in Dubai.

"At the moment we are focused on growing the Middle East business, but we are potentially looking at manufacturing in the region in four or five years time," says Daryoush Larizadeh, chief operating officer at the privately-held firm.

"The key question is going to be scale, but the good thing about Dubai is that it has the logistics facilities and a port. Other parts of the world do not have that luxury."

Should the company take that step it would represent a coup for the region given Leviton currently assembles 90% of its products at self-owned manufacturing plants in North America and China.

Larizadeh did not indicate which products were likely to be assembled in the region, but he expects the firm's connectivity and commercial energy management solutions to receive strong acceptance as its Middle East operations take off.

Leviton currently makes around ten percent of its US$2 billion annual turnover from international sales. It is allocating US$2m towards ramping up its Middle East business and Larizadeh anticipates that its faith will be quickly repaid.

"We're expecting to double our investment every year going forward," he says.

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