Zhongshan, Guangdong – China’s Homa Appliances is planning a new plant. It will have 1m unit/year refrigerator capacity and 1.2m unit/year freezer capacity in its headquarters city of Zhongshan.
China’s household refrigerator market had a grim year in 2018, with 80m unit national total production, down by 3.9% from 2017 following two years of growth, according to data from the country’s National Bureau of Statistics. This is the most recent year for which statistics are available.
A leading original design manufacturer and export in China, Homa sold 8.8m refrigerators in 2017, accounting for 89% of its CNY 7bn ($1.04bn) annual revenue.
The company estimates it will make a CNY 1.85bn net loss in 2018, mostly a result of its diversification into finance. Annual revenue is about CNY 7.8bn for the year, a Homa announcement said.
In addition, the new CNY 580m plant, covering 90,000 m2, will create 2,300 new jobs. The project is expected to generate CNY 100m annual profit on CNY 2bn sales, the report claimed.
Currency conversion: Xe.com
