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Arrow’s 2 Billion Output Value Project Opened. Shandong Meilin, Kohler, Makino Sanitary, Zbom And Other Expansion Projects Were Revealed

Kitchen And Bathroom Jun Kitchen And Bathroom Headlines

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Recently, Jingdezhen Lehua Ceramic Sanitary Ware Co., Ltd, a subsidiary of Arrow Home Group Co. held a groundbreaking ceremony for a project with an annual production capacity of 10 million sets of faucets and 3 million sets of showerheads. Arrow Home Chairman and General Manager Xie Yurong said at the scene that the project’s output value will exceed 2 billion yuan and it is expected to add tax revenue in more than 120 million yuan.

In the first half of 2021, expansion has become one of the keywords of the bathroom and home industry. Domestic and foreign enterprises have carried out a new round of expansion plans. In the second half of the year, the public expansion plans of enterprises also include: Chenglin, Kohler, Makino sanitary ware, Zbom home, South China Decoration Group, etc.. According to incomplete statistics, only these companies spent on new projects amounted to more than 3 billion yuan.

Company Name

Project Overview

Chenglin Construction of ceramic sanitary ware production line for $40 million in Shandong Meilin
Kohler Expansion of French engine plant with millions of dollars
Makino Bathroom Investment of 1.05 billion yuan to build Makino Sanitary Industrial Park
Shibang Home Investment of 1.6 billion yuan to build Qingyuan Zhibang Intelligent Manufacturing Project
South China Decoration Group Proposed to raise capital for the listing and construction of three major projects including Luhe South China Environmental Protection Building Decoration Parts and Components Production Base
Puno Cabinet Invested 15 million Euros to build a cabinet factory

 

The output value of Arrow Home’s new projects

will exceed 2 billion yuan

According to the Fuliang release, on August 8, the groundbreaking ceremony for the annual production capacity of 10 million sets of faucets and 3 million sets of showerheads was held at Jingdezhen Lehua Ceramic Sanitary Ware Co. The company will build the faucet workshop into an intelligent, low-carbon, green factory, and strive to make the project a high-quality, high-efficiency, high-benefit, high-value-added industry.

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It is understood that Jingdezhen Lehua Ceramic Sanitary Ware Co., Ltd. is a wholly-owned subsidiary of Arrow Home Group Co. In 2020, the company ranked 8th among the top 20 taxpayers in Jingdezhen with sales of 855,149,800 yuan and tax generation of 92,078,000 yuan.

In addition to the Jingdezhen-related projects, Arrow Home also disclosed several investment projects in its prospectus published in July, including the “annual production capacity of 10 million sets of faucets and 3 million sets of showerheads project”. The total investment of the project is 680 million yuan, and the proposed use of funds raised 460 million yuan. It is expected that after all the production, its average annual increase in operating income is 1.171 billion yuan, and the average annual net profit is 134 million yuan.

Unit: million yuan

No. Project Name Total investment Proposed use of proceeds
1 Intelligent home products production capacity technical transformation project 48,192.30 48,19230
2 Annual production capacity of 10 million sets of faucets, 3 million sets of shower project 68,000.00 46,025.57
3 Intelligent home R & D testing center technology transformation project 17,364.00 17,364.00
4 Digital intelligence upgrade technology transformation project 9,054.75 9,054.75
5 Marketing service network upgrade and brand construction project based on new retail mode 26,310.38 26,310.38
6 Supplementary working capital 34,000.00 34,000.00
Total 202,921.44 180,947.00

 

Chenglin, Kohler, Makino sanitary ware

Zbom home and other expansions

In addition to Arrow home, into the second half of the year, Chenglin, Kohler, Makino sanitary ware, Zbom home, South China Decoration Group and other sanitary ware, home furnishing enterprises also announced plans to expand production, and the total investment amount of these enterprises exceeded 2 billion yuan.

■ Chenglin

Chenglin held a shareholders’ meeting on August 2. At the meeting, in addition to announcing seven directors and other senior management candidates, a new round of expansion plans was also revealed. It is reported that Chenglin’s Shandong Meilin will use its own capital of RMB 40 million to build a ceramic sanitary production line for expansion, which is scheduled to be put into production in the first half of 2022. Chenglin also revealed that the company has acquired a Mexican factory. With the process optimization and capacity enhancement, it is expected to achieve profitability from the third quarter of this year.

■ Kohler

Kohler recently announced that it will make a multi-million dollar investment in its production site in northwest France over the next five years to meet the rapidly growing market demand for generators. The 42,800-square-meter facility will expand manufacturing and logistics facilities and upgrade dock infrastructure to support higher capacity marine transportation. In addition to manufacturing kitchen and bathroom products, Kohler is also reportedly a world-renowned engine manufacturer. The business also has a presence in the Chinese market.

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■ Puno Cabinets

On August 12, local time, the German cabinet company Pernod (pronorm) with a total investment of 15 million euros (about 115 million yuan) held a groundbreaking ceremony for its cabinet production project. The project has a total area of 2,500 square meters and is scheduled to be completed in early 2022. The company’s cabinet production capacity will increase from 30,000 sets to 40,000 sets per year after the commissioning. It is reported that Purano is strengthening its business in China by setting up Shanghai Wopu International Trading Co.

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■ Makino Bathroom

It is reported that in July, Shiyan City, Zhuxi County, a new bathroom project – Makino Sanitary Industrial Park. The project has invested 1.05 billion yuan and covers an area of 58 mu. It has an average investment of 18.1 million yuan per mu and 12 40,000 square meters of two-story factory buildings, which are expected to be put into operation in June 2022. After reaching production, it will be able to produce 5 million sets of sanitary products per year, with an annual output value of 700 million yuan and 60 million yuan of tax payment.

■ Zbom Home

On July 28, Zbom Home made an announcement that the company signed an investment agreement with the Management Committee of Guangzhou (Qingyuan) Industrial Transfer Industrial Park. It intends to invest a total of 1.6 billion yuan to build the Qingyuan Zbom Intelligent Manufacturing Project in Guangzhou. Its project is mainly for the construction of factory buildings, office buildings, R&D buildings, dormitory buildings and auxiliary plants, and is expected to reach production output of 2.6 billion yuan/year.

■ South China Decoration Group

According to the prospectus of South China Decoration Group disclosed by SEC on July 27, the company intends to issue not more than 56,666,700 A shares, and the funds raised will be used for the construction of three projects, including the Luhe Huainan environmental protection building decoration parts production base project. Among them, the total investment amount of Luhe Huainan environmental protection building decoration parts production base project is 143 million yuan. The site is located in Xintian Town, Luhe County, Shanwei City, Guangdong Province, covering an area of 16,917.62 square meters. After reaching production, it is expected to have an annual output of 30,000 cubic meters of anti-deformation plywood, 400,000 square meters of aluminum alloy doors and windows, and 50,000 square meters of curtain walls.

Unit: million yuan

No. Project Name Project Investment Amount Amount of proceeds to be used
1 Luhe South China Environmental Protection Building Decoration Parts Production Base Project 14,340.83 14,340.83
2 Creative design center construction project 3,038.28 3,038.28
3 Supplementary engineering working capital 87,871.10 40,000.00
Total 105,250.21 57,379.11

 

Behind the expansion of production, the

Preparing for capturing a larger market share

Since the second half of the year, although the domestic epidemic rebounded sporadically, and local areas suffered heavy rainfall and other unfavorable weather factors, the national building materials and home market development trends remain stable overall. In the past July, the national building materials and home furnishing sentiment index (BHI) was 120.84, down 0.15 points from the previous year and up 36.27 points from the previous year. National sales of building materials and home furnishing stores above the scale in July were 91.26 billion yuan, down 5.82% from the previous month and up 40.74% from the previous year. From January to July in 2021, the accumulated sales were 572.24 billion yuan, up 68.24% year-on-year.

Behind the expansion, carries the ambition of the enterprise to reconstruct the market pattern. At present, the market size of the building materials and home furnishing industry is counted in trillions of yuan. The current market is tapped out only a hundred billion volume, so home furnishing enterprises have been expanding production capacity, to seize the continued expansion of the market early energy storage.

In addition, the larger-scale expansion of production also reflects the comprehensive strength of the enterprise, the news of the investment in the construction of factories on the enterprise undoubtedly has an immediate effect of publicity. For the brand’s dealers, the enterprise’s expansion news can also stimulate the desire to invest and strengthen the enterprise’s distribution team. At the same time, many enterprises to take the multi-point production base layout, but also can effectively shorten the logistics time, to achieve more efficient delivery, to provide strong support for dealers around the service.

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