Monarchy expanding plant
By Thomas Russell -- Furniture Today, July 9, 2007
Hangzhou, China — Case goods and upholstery maker Monarchy Furniture Mfg. is doubling the size of its 600,000-square-foot factory here.
The $11 million expansion began in February and should be completed by next February, said CEO Henry Zhu.
The facility makes high-end living room furniture. Zhu said the project will expand its occasional and upholstery making capabilities and allow production of more lifestyle collections of top-selling groups.
He said the expansion largely is in response to interest from U.S. furniture companies such as La-Z-Boy, Thomasville, Schnadig, Bassett, City Furniture and others.
Monarchy, founded in 1998, initially served mostly Middle Eastern and Asian markets, and still sells in those regions. But the United States is now its largest customer, accounting for about 70% of sales, Zhu said.
The Hangzhou factory employs about 700 workers and ships 120 containers per month. With the expansion, it will employ at least 1,500 workers and be able to ship some 300 containers a month.
The company also has two smaller living room furniture factories and a partnership with a 300,000-square-foot case goods factory called Zhong Nan Wood Inds. Ltd. Located about 21 miles from the Hangzhou factory, the latter facility employs some 300 workers and can ship 100 containers a month.
Monarchy plans to use that facility to produce case goods collections that tie in with living room collections made in Hangzhou.
"We have so many good customers that need case goods along with living room furniture," Zhu said.
Steve Beeker, a vice president of upholstery sales and merchandising for Kincaid Furniture, said he visited Monarchy's factory in early March. He was particularly impressed with the company's opulent fabric selection and its highly carved exposed-wood sofa frames that match occasional groups.
He also was impressed with the plant's finishing capabilities, with a variety of multi-step, hand-rubbed finishes. "It's got a lot of perceived value for the money," Beeker said, noting the finishes also have excellent clarity.
While Kincaid had not purchased goods from the factory by early June, Zhu is optimistic about his prospects with it and other U.S. furniture companies.
"I feel my capacity is not enough to supply (those customers now)," he said. "That is why we are expanding the factory so quickly."
