Thursday, January 16, 2020
Kuka Home, the Chinese furniture giant recently expands business and established manufacturing base in Mexico. Kuka expanded its operation with a new upholstery plant in Mexico that will specialize in special order upholstery for the market. Initially the plant will be 130,000 square feet, with a goal of 750,000 square feet in the future. Around 250 employees will be initially hired. That number could go up to 1,500 by 2025.
“We’re starting out shipping to a couple of existing dealers with existing models and a limited cover selection — 15 or 20 — and fabric only initially,” said Steve Lush, president of Kuka Home North America. “We’re starting small on purpose to ensure our quality standards are met.”
“As the factory gains experience, we’ll expand shipping to more dealers with more models and up to 100 truckloads a month by the end of the year,” Lush said. “We’re looking at an ultimate capacity of around 600 truckloads a month. This will serve what we feel is a growing part of the market: special orders with fast delivery capability.” It is expected that the plant will produce 23 to 30 truckloads a month initially. Lush further added that the company chose Monterrey because of its highly-skilled workforce. He also said the state’s government has been helpful.
Kuka’s plan is to become a global manufacturer. It is also beginning production on 400,000-square-foot plant in Ho Chi Minh City. The company is headquartered in China and runs five manufacturing plants there.
News source- woodworkingnetwork