Kohler plans to spend $75 million (about 475 million yuan) to set up factories in Jiangsu Changzhou, the current project has been signed, after the completion of the project, the annual output value of next five years plans of more than 3 billion yuan.
Second times expansion in 4 months
According to the Changzhou Evening News reported on February 28th, Kohler China Investment Co signed an agreement with the Wujin national high tech Zone, Kohler project will be located in the park.
Wujin national hi-tech Zone is located in Changzhou, Jiangsu. It is the first provincial-level high-tech zone in Jiangsu province. It was established in July 1997. Its jurisdiction area is 81 square kilometers, and its resident population is more than 70 thousand people.
Wujin national high tech Zone
It is understood that the new Kohler project in Wujin national high tech Zone, mainly engaged in water purification equipment, bath heater, concealed water tank, assembled the whole bathroom related products R & D, production, and sales. The total investment of the project is 75 million US dollars, the registered capital is $25 million, and the output value of the project in the next five years is over 3 billion yuan.
This is the second expand production plan within 4 months after Kohler announcing the investment in Indonesia Cikarang. December 2017，Kohler announced investing $100 million to build a factory in Indonesia, it is expected to produce 1 million kitchen and toilet products per year, and the factory will start operation in 2019.
According to official data, Kohler currently has about 50 factories in the world. According to a report from Kohler in a speech in 2014, Kohler Factory Distribution: Asia Pacific region 15, 2 in India, 12 in Europe, Africa, and the Middle East 1, North America 16, Latin America 2, New Zealand 1. As a bathroom brand which enters into the Chinese market earlier, Kohler currently already has more than 10 factories in Chinese, located in Beijing, Shanghai, Foshan, Zhuhai, Zhongshan, Nanchang, Changshu and other places.
Kohler 2014 global factory distribution map
Enterprises expand production, each has its own layout
Business expansion is related to the change in the concept of national consumption, It is a strategic measure for enterprises to meet the needs of the market and develop themselves.
This wave of expansion has the characteristics of intelligentized, large-scale, and ubiquitous, and is compatible with the great environment of the transformation of domestic manufacturing industry. As a low attention industry in the traditional view, the bathroom industry has been transformed rapidly under the leadership of many leading companies in recent years, and has stepped out of the industry's inherent territory and is recognized by more consumers, this can be seen from the layout of the capacity of the enterprises.
On the other hand, the expansion of foreign enterprises may be another way of thinking. For example, TOTO's newly built factories in recent years are located in Southeast Asia, which may be associated with the slow growth of these companies in the main markets.
