Nantong Healthcare Machinery ups direct supply to furniture makers

Guangzhou, China – Flexible foam cutting and storage equipment maker Nantong Healthcare Machinery (NHM) said furniture makers are taking a larger share of its output. 
 
‘An increasing number of sofa makers are adding [foam lines to their factories] for better time control, and with good business momentum it’d bring down the costs,’ the company’s technical manager Lin Changbin told UTECH-polyurethane.com. He was talking on the sidelines of PU China 2019 held in Guangzhou on 5-7 September. 
 
NHM is in whole factory design for clients in China and overseas as well. It has designed plants in the US, Serbia and Thailand plants for its parent company Healthcare Co. This is a Chinese mattress maker also known by the Mlily label.
 
Last year NHM recorded CNY 120m ($17m) sales, up 30% from 2017. Whole factory design, apart from business with its parent firm, contributed 10% revenue. The company expects that percentage to double over the next few years.
 
Its fastest growing market is Southeast Asia as Chinese OEMs relocate their plants to counter the US trade barriers. ‘China’s mattress OEMs’ profit margin is usually below 20%,’ said Lin. ‘The 25% tariff plus anti-dumping duties would be devastating.’
Lin said mattress OEMs Xilinmen, Zinus and Shangyu all have plans to build or are operating plants in Vietnam.
 
A bottleneck which is slowing the rate of transfer to Southeast Asia is local supply of textile covers. ‘The demand is just too big,’ said Lin.