Local Manufacturing Makes Sense for Hisense’s long-term development in SA

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Cape Town time June 6th, Hisense held a ceremony to celebrated its state-of-the-art manufacturing plant’s open in Atlantis in the Western Cape, which was purchased by Hisense from Tedelex in July 2012 as Hisense’s new industry plant in South Africa. The new plant will play an important role to grow its already significant market-share and to achieve long-term development of Hisense brand in South Africa.

The existing factory building is 24,000sqm, and an injection-molding facility of an additional 1,200sqm has been completed. Hisense has also purchased a further 24,000sqm of land behind the factory, with a view to expanding production to washing machines, air conditioning units and, possibly, wine coolers and coffee machines.

The new plant is an important electronics and home appliance production base. The company manufacturing complete knock-down kits (CKD) for refrigerators and LED Smart TV’s locally, rather than shipping-in finished products to promote the local production capacity of Hisense eco-friendly and high-end products. Hisense started the complete manufacture of flat-screen televisions and refrigerators at the plant in February this year, with a workforce of already 300 people recruited within the first month after construction has been completed.

The main priority for Hisense is to maximize capacity in SA first, but the Atlantis factory will ultimately be responsible for exports into Africa. Future plans for expanding production including increasing employment to 1000 people over the next few years. Even though Hisense is in the global top-10 of television, household appliance and mobile technology manufacturers, with a turnover of $12.8bn in 2012, the Atlantis production plant is one of only five established by the company outside of China.

Dr. Lin Vice president of Hisense stated that local manufacturing is a favourable way for Hisense to develop its overseas market and Hisense believes the move will improve competitiveness and supports Hisense strategy to be fully entrenched in the domestic market. As the fifth overseas production base, the Atlantis plant will have an important impact on Hisense overseas developing. Hisense SA MD Jerry Liu says local production will give Hisense a considerable commercial advantage, and it will also entrench the company in the local community. He says, “We are determined to establish a sustainable partnership with South Africans and not just be a foreign company supplying the market. We are investing in people, as well as the bottom line.”

There are plans for a second phase of development which will see air cons and washing machines rolling off the Atlantis production lines as well.

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