Hangzhou, Zhejiang – China’s leading upholstered furniture manufacturer Jason Furniture, also known as Kuka Home, expects its two new plants in China and Vietnam to start operation on schedule, the company told UTECH-polyurethane.com in May.
The Chinese plant is located in Huanggang, Hubei province and is the firm’s second site in the city. It broke ground in early 2021, and has designed annual capacity for 120,000 standard units and 5m m3 custom-made products.
The company is earmarking an CNY1bn ($154m) investment to generate CNY1.5bn/year sales, with nearly 12% profit margin. The plant is expected to come on stream in the first quarter of 2022.
Ground was broken in Dong Xoai city for the Vietnamese plant at the end of 2020. It represents a CNY505m investment, with designed annual capacity for 500,000 standard units, said the company.
Production will start ramping up in Vietnam in the first quarter of 2022, if all goes to schedule. The plant is designed to t is estimated to generate CNY1.7bn/year sales when it is fully operational be by the end of 2025.
Jason Furniture is also contemplating investing in a new site in south-western China, according to its annual report. No further details were given.
In 2020, the company recorded CNY12.7bn sales, up 14% from a year ago. Net profit, however, fell by 27% year on year to CNY845m because goodwill depreciation, the report said.
Exchange rates: Xe.com