Basis laid for further organic growth in Asia: Hansgrohe increases manufacturing capacity in China after record sales
Hansgrohe SE, one of the leading global bathroom and sanitation specialists, headquartered in Germany’s Black Forest (www.hansgrohe.com), unveiled a major 8,000 square metre extension to its mixer production facility in Songjiang, outside of Shanghai, China. The extension – representing an investment of over 13 million Euro (approximately 100 million Yuan) over several years – includes three new structures; two of which are for manufacturing use, while one is for staff purposes.
The factory houses ultra-modern mixer production facilities, and will boost Hansgrohe’s ability to serve both a domestic Chinese audience, as well as the wider Asian market. Since entering the Chinese market in 1999, Hansgrohe has grown rapidly and delivered record sales in 2012, which saw China become Hansgrohe’s biggest market, second only to its home market Germany.
This organic sales growth – more than 20 per cent over the previous year – has helped Hansgrohe SE to strengthen its position as the number one German mixer manufacturer in China. In addition to this market-beating growth, Hansgrohe’s continued distribution expansion into the Chinese back-country, as well as the intensification of market development initiatives, have also led to turnover increases.
The expanded site will allow Hansgrohe to deliver even more competitively priced quality Hansgrohe flagship products into the Chinese market, offering them “water pleasure” and award winning design. In addition, an improved supply chain network will strengthen Hansgrohe’s customer-oriented sales and service priorities.
The Hansgrohe plant in Shanghai is a subsidiary set up by the Hansgrohe Group, in accordance with unified production standards set in Germany, which are built on more than 111 years of innovation and setting of quality standards in the global bathroom sector. For example, the most recent new products launched in the Chinese market this year – such as the Axor Starck Organic and Hansgrohe Select ranges – have benefited from a number of Hansgrohe’s patented technologies, including EcoSmart.
Mr. Siegfried Gänßlen, CEO of Hansgrohe SE, said: “We are delighted to be able to unveil our new and expanded plant at Songjiang, which will allow us to better serve our very important Chinese market by tailoring our products according to local preferences. It will also improve our logistics and supply chains and drive further organic growth in one of the largest future markets.”
Mr. Quansheng Ren, President of Hansgrohe China, added: “2013 will be a big year for Hansgrohe in China. Not only are we greatly improving our state-of-the-art mixer factory in Songjiang, but we aim to add more than 100 new points of sale to ensure that our growth story continues.”
Hansgrohe has over 400 franchised stores in China, including flagship stores in Shanghai, Beijing, Shenzhen and Hangzhou, and the improvements to the site will grow the factory’s output from 1.3 million pieces per year, to a future capacity of approximately 2.4 million per year.