On September 10, KUKA Home signed a project investment agreement with the Hangzhou Qiantang New District Management Committee, and planned to use RMB 2,495,720,200 to invest in the construction of KUKA Home 1 million new software home furnishings and supporting industry projects.

The announcement stated that the project intends to build a production base in Qiantang District, Hangzhou. The project is mainly engaged in furniture industry chain products such as high-end soft sofas, high-end intelligent functional sofas, high-end mattresses, intelligent control system functional iron frames, motors and accessories, and intelligent system accessories. 

Relying on new technologies such as big data, Internet of Things, cloud computing, AI/VI, and other new technologies, we will build a smart digital factory, build an industrial 4.0-level advanced mattress production line, and realize intelligent control of the whole process of home production.

The project covers an area of about 430 acres and is expected to start in the first quarter of 2022. The construction period of the project is 36 months. The first phase of the project is expected to be completed and put into production before the end of 2023. The later construction will be determined according to the growth rhythm of market demand. time. When the project' s overall goal is reached, it is estimated that the operating income will be about 4.35 billion yuan, and the investment payback period (excluding the construction period) will be 6.24 years.

KUKA Home also stated that the layout of the project’ s production base in East China will help consolidate the company’ s market in East China. After the project is completed, it will effectively enhance the company’ s competitiveness and market share in the furniture industry, and further strengthen the company’ s business status in the industry. 

In the recent past, KUKA Home has made efforts to expand its production capacity. Just a month ago (August 30), KUKA Home announced that the company invested 1.2 billion yuan to build a Southwest production base project to produce high-end sofas, mattresses and other products. The annual output value of the project will be about 2.5 billion yuan.