Kuka Home Completes Expansion of Mexican Factory, Expected Output to Reach USD 115 Million

Consumer Discretionary Author: Muriel Meng Editor: Yiru Qian Feb 01, 2024 12:25 PM (GMT+8)

Kuka Home Expands Further in Its Overseas Journey

Smart home

Kuka Home has recently completed the expansion of its factory in Nuevo León, Mexico, with an expected output value of USD 115 million and a workforce of 5,000 employees.

Daniel Zhao, General Manager of Kuka Home Mexico, stated that the Monterrey factory provides essential services to customers in the North American market, which accounts for a significant portion of the company's sales in Mexico.

According to the company's disclosure, the expansion of the Nuevo León factory in Mexico will enable the company to rapidly increase production scale, improve production efficiency, expand product offerings for the market, cater to individual consumer preferences, shorten order cycles, accelerate delivery speed, enhance customer satisfaction, and improve brand image and reputation while ensuring product quality. The estimated annual revenue from this project is approximately USD 3.019 billion, with a payback period (including the construction period) of 6.08 years.

Established in 1982, Kuka Home focuses on the research, development, design, production, and sales of customized home furnishings for living rooms, dining rooms, bedrooms, and entire homes. In October 2016, Kuka Home successfully listed on the Shanghai Stock Exchange with the stock code 603816.

As the leading brand in China's soft home furnishing industry, Kuka Home has over 6,000 retail stores in China and has established brand retail stores in various locations such as Hong Kong, Taiwan, Singapore, India, Thailand, Vietnam, Uzbekistan, Brunei, Lebanon, Jordan, and Egypt. The company has factories in China, Vietnam, and Mexico, covering business operations in 120+ countries and regions worldwide, with approximately 25,000 employees.

In fact, as early as 2000, Kuka Home participated in international furniture exhibitions and began its overseas layout.

In 2008, Kuka Home made its debut at the Las Vegas International Furniture Fair in the United States, creating a buzz both domestically and internationally. In 2010, the company's first self-owned brand store, KUKA HOME, officially opened in the Netherlands.

In 2018, the company partnered with the high-end Italian home furnishings brand Natuzzi to establish a joint venture company. It acquired the German top home furnishings brand Rolf Benz, the American furniture brand "Wide Pavilion," the export mattress brand Delandis Xibo, and established its first overseas self-built production base, the Vietnam Production Base Project.

In 2019, the company's factory in Malaysia went into operation, and its first overseas research and development center, the Milan Design Research Center, was established. The construction of the Huafushan Phase I manufacturing base in Mexico also commenced during the same period.

In 2022, Kuka Home' Interpuerto manufacturing base in Mexico was officially launched and has been put into operation since November this year. This represents another important international strategic layout following the Vietnam overseas factory, with a supply capacity of 410,000 sets of sofas and 90,000 sets of bedding. According to the current investment expansion plan, the output value of the Vietnam and Mexico factories is expected to reach USD 500 million and USD 450 million, respectively, by 2027.

To date, Kuka Home' "going-global" strategy has been implemented for 23 years, with ten major manufacturing bases worldwide, including three overseas bases in Mexico, Vietnam, and Germany, radiating the North American, Southeast Asian, and European markets, thereby shortening its sales radius and improving supply chain efficiency.

In the future, Kuka Home will continue to deepen its global layout, bolstered by brand strength, product power, and design capabilities, and further expand its overseas presence with a focus on the full-house lifestyle concept and large store models.