Dong Xoai, Vietnam – Chinese upholstery furniture manufacturer Jason Furniture plans to build its first overseas site. It will invest CNY505m ($77m) in a facility in Vietnam’s Dong Xoai city, pending regulatory approval.
The site covers 106,000m2 and the multi-floor factory will have 210,000m2 floor area, according to a company announcement. It has designed annual capacity for 500,000 standard units, and will be buying foam on the market in Vietnam.
The company plans to break ground by the end of 2020, and start partial operation in the first quarter of 2022.It is estimated to generate CNY1.7bn annual sales when fully operational, which is expected to be by the end of 2025.
The new location will help Jason Furniture reduce the impact from US tariffs and improve its supply chain for exports, the company said. It will also further promote its big client strategy.
Jason Furniture is based in Hangzhou, Zhejiang province, and also known as Kuka Home. In 2019, it recorded CNY11.1bn revenue, up 12% year on year, with overseas sales accounting for 42% of the total. Net profit last year rose by 17% to CNY1.2bn.
Jason Furniture to build Vietnam upholstery plant
