New Sunny Designs plant set to open in Indonesia
Heath E. Combs -- Furniture Today, December 6, 2012
Sunny Designs plans to begin mixing goods on containers from Indonesia sourcing partners in its new plant in Surabaya, which is under construction.
The factory will produce case goods, dining, entertainment and bedroom furniture, said Hokeun Lee, vice president of sales. It will be the first factory owned by Sunny Designs in Indonesia.
In China, Sunny Designs operates four facilities in Tianjin with about a million square feet of space and one large factory of about one million square feet in Shandong.
Currently roofing and flooring is being installed in the 400,000-square-foot Indonesia facility, Lee said, adding that up to one million square feet are planned.
A finishing line and production equipment will be installed with a goal of manufacturing items in the first quarter, he said. The plant will be capable of producing 100 to 200 containers a month when fully operational, he said.
One of the reasons Sunny Designs wants its own plant here is to control its manufacturing destiny, Lee said. That means it won't risk having its orders put on hold while plants serve other distributors, and it will be able to control finish and product quality, he said.
"When your own people are managing everything you tend to have less errors and consistent product going in the box," he said. "When you control your own production you're in the driver's seat."
Lee said that while initial plans are for a few hundred workers, eventually the plant could have about 1,000 employees. Among the areas in which the company believes it can bring increased efficiency to Indonesia is chair building, which is one of the company's strengths in China.
Lee said Sunny Designs currently ships about 50 containers a month of sourced products from Indonesia. The company intends to retain its current sourcing partners, he added.
"We want to maintain all of the relationships with the factories we are currently buying from. We're not going to (shift) the production into our facility," Lee said. "We have too many SKUs in Indonesia to do that. This'll be for just real targeted stuff, our new designs that maybe we want to keep in house."
While furniture retailers are used to mixing product from Chinese factories, that has been more difficult in Indonesia, Lee said. Sunny Designs will bring inventory from other facilities to do mixing in a warehouse portion of its plant.
"We can mix and match everything that we make in Indonesia. Which is going to be huge," Lee said. "There's a lot of our dealers that are waiting to be able to buy like they do in China."
In other news, Sunny Designs recently launched a line of fireplace media units, consoles and mantles. Prices start at about $499 and the company plans to top out at $999 for bigger units, Lee said. It's currently offering about 19 models.
It also plans to add fireboxes to entertainment and library walls, Lee said, adding that the company is using Twin-Star fireboxes.
Lee said Sunny Designs officials saw media fireplaces with styles similar to its own entertainment consoles, and thought the category would be popular with its dealers. It wasn't comfortable making the units until it found the right firebox supplier, he said.
"We're very strong in consoles and our competition was duplicating our look," Lee said.
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