Hisense Targets American TV Market

hisense-mexican-factoryRecently, the media focused on manufacturers to move closer to consumer markets to establish plants and factories. In 2015, Hisense completed the acquisition of the Sharp’s TV factory in Mexico, and recently Hisense announced to add another $ 30 million for automation and production efficiency update to accelerate its develop in the American market. The Wall Street Journal, TWICE and other well-known global media highlighted and reported the move.

It was reported that Hisense would further enhance the automation and capacity upgrade and the annual capacity of the factory was expected to 4 million units from the current 1.5 million units while the number of employees would drop to 500 from 800 to achieve manufacturing efficiencies. The report also pointed out that, for Hisense, producing TVs in Mexico would cut up to a month off transit time to the U.S., and would allow retailers to keep inventories lean.

Excerpts from the reports:

The Wall Street Journal: Hisense Targets American TV Market With Mexican Factory

Hisense will put an additional $30 million toward a plant in Rosarito, Mexico it bought from Sharp Corp. last year, said Jerry Liu, the company’s Americas CEO, who also led its effort to set manufacturing up in Africa. The company plans to enhance automation and increase production capacity, with a goal of shipping as many as four million televisions throughout North America a year, up from 1.5 million today.

TWICE: Hisense To Double Mexico Production To 3 Million TVs Per Year

“In addition to enhancing our logistics and fulfillment capabilities through its strategic location,” said Hisense North America CEO Jerry Liu, “this world-class facility will be producing a total of 47 television models that will be available to consumers across North and South America this year.”

The Wall Street Journal: Today’s Top Supply Chain and Logistics News From WSJ
With labor and land costs in China rising, manufacturers see advantages in moving closer to consumer markets, allowing them to get goods to customers more quickly and better compete with established electronics brands. Hisense says producing TVs in Mexico cuts up to a month off transit time to the U.S., allowing retailers to keep inventories lean.

For the full articles, please click the links below:
http://www.wsj.com/articles/hisense-targets-american-tv-market-with-mexican-factory-1456914603
http://www.wsj.com/articles/todays-top-supply-chain-and-logistics-news-from-wsj-1456918842
http://www.twice.com/news/tv/hisense-double-mexico-production-3-million-tvs-year/60645