Chinese furniture giant Kuka sets up manufacturing base in Mexico
January 14, 2020 | 11:12 am CST
MONTERREY, Mexico - Kuka Home is expanding its operations in North America, setting up a new upholstery plant in Mexico that will specialize in special order upholstery for the North American market.
The plant will initially 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.”
Initial production should be 23 to 30 truckloads a month.
Lush said the company chose Monterrey because of its highly-skilled workforce, reported Furniture Today. 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.
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