Sunny Designs expanding in China to serve U.S.
By Thomas Russell -- Furniture Today, February 4, 2007
Las Vegas — Case goods importer Sunny Designs is expanding its manufacturing presence in China as part of an effort to boost its ability to serve U.S. retailers.
The company now has two 150,000-square-foot factories in Tianjin, one for dining and one that makes home office and entertainment, occasional tables, barstools and some dining.
By the end of 2008, it plans to add about 850,000 square feet of manufacturing and warehouse space within 20 minutes of its existing facilities.
These include:
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A 200,000-square-foot operation set to open by early spring that will produce home office and entertainment, dining and occasional furniture. It will include an 80,000-square-foot warehouse that will ship goods in three to five days of order.
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A 150,000-square foot plant in Tianjin that will produce mostly home office, home entertainment and occasional, to open in May or soon after.
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A 500,000-square-foot bedroom factory on 35 acres in Tianjin. The land already has a 90,000-square-foot building that once made rugs. The company will add 200,000 square feet by the end of this year and another 200,000 by the end of 2008, including about 100,000 square feet of warehouse.
The bedroom plant is somewhat risky because the company doesn't know if it will receive a low enough U.S. import duty to produce bedroom. To avoid those duties, it now makes all of its bedroom in Mexico.
If it doesn't receive a favorable rate, it expects to provide the plant with plenty of home entertainment orders to keep it running, said President Sunny Hwang.
"My goal is to make everything in our own factories," Hwang said, since that this will allow the company to better control its manufacturing and better serve its dealers.
"We are focused on giving the customer the service they need as well as the look and the price," said Sergio Zorio, vice president of sales.
"By owning your own factory, you have an advantage where you can work faster and give the customer the turnaround they need. It's not just about selling the product, it's about the service," he added.
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Sunny Designs plans to expand Chinese facilities
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