KUKA HOME’s 2.3-million-square-foot Mexico strategy
HIGH POINT—KUKA HOME, has officially launched Phase I of its planned 2.3-million-square-foot manufacturing and office campus with a groundbreaking ceremony in Nuevo Leon, Mexico.
The company purchased 90 acres to construct four facilities for upholstery and mattress production. For the past two years, KUKA HOME has been producing upholstered furniture, accent chairs and upholstered beds on two campuses near Monterrey, Mexico, totaling more than 350,000 square feet and in its 250,000-square-foot mattress facility.
“This groundbreaking ceremony marks an exciting new chapter for KUKA HOME and the beginning of Phase I of the first 360,000-square-foot manufacturing and office facility,” said Rain Jin, vice president of international business at KUKA HOME. “Within the next three years, this will become KUKA HOME’s largest manufacturing base in North America. The facility will integrate research, design, production and sales. Eventually, it will represent 23% of our global sales.”
The company plans to invest more than $200 million in the manufacturing campus. “This calculated investment is based on the support from our diverse customer base telling us they will continue to increase their orders based on the successes they have had with the current KUKA HOME product being manufactured in our existing facilities,” said Matt Harrison, president of KUKA HOME North America.
The company plans to begin production of motion and stationary upholstery from the facility in Q1 of 2023. Phase II will include adding a showroom, research and development center and a state-of-the-art testing lab.
Ivan Rivas, secretary of economy of Nuevo Leon, pointed out factors that led to KUKA HOME’s strategy to make the location one of its global manufacturing bases. “Here we have highly trained human capital including technicians and engineers for their research and development center, along with a strategic geographical position with proximity to the Colombia Bridge to facilitate export to North America.”
KUKA HOME’s management from China, the U.S. and Mexico, along with local employees, customers, suppliers and state and local government officials attended the groundbreaking.