Nantong, Jiangsu – Chinese mattress and pillow maker Mlily said it is expanding production in Valencia, Spain, as well as building a new plant in Phoenix, Arizona during its H1 results announcement.
The company has completed China’s regulatory process for outbound investment and registered overseas companies for both projects, Mlily told UTECH-polyurethanes.com.
The Valencia project will be separate from any existing facilities of Maxcolchon, a Spanish mattress brand it bought in 2017, said Mlily. It declined to disclose more details on the new plant.
It added that the new capacity in Spain will use Maxcolchon’s distribution channels. Output from the new plant will go to the US and Europe markets, the half-year report said.
The company was also cagy about its new US site in Arizona. However, it conceded that it will share resources with the existing Georgia site and create synergy with the sales network of Mor Furniture For Less. Mlily bought Mor Furniture last year.
As of H1 2020, Mlily's overseas assets were valued at CNY2.5bn ($362m). These are 43% of its total assets. Sales in the half jumped 53% year-on-year, to CNY2.4bn, as it benefited from new clients. Net profit in the half was CNY155m, up 3% on H1 2019.
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