Hisense keeps expanding in South Africa

New factory

On June 6, 2013, the Chinese technology manufacturer officially opened their factory in Atlantis on a massive premises bought from Amalgamated Appliances in 2012. The launch was attended by politicians and dignitaries, including Dr. Lan Lin, executive vice president of Hisense, South African Minister of Economic Development Ebrahim Patel and Western Cape Premier Helen Zille.

Hisense, whose Chinese name denotes a broad oceanic vision and credibility, chose the remote location as it needed an existing facility that met the company's requirements. It is comprised of 6,000 square meters for producing flat screen TVs, and 18,000 square meters for its eco-friendly refrigeration operation.

Deputy General Manager Ebrahim Khan said the size of the factory was very important, as the company's plans include the South African and wider African market. Hisense envisions having the flat screen TV and refrigeration business in the same space, along with expansion programs that could feature commercial air conditioners, wine coolers and other diverse offerings.

This expansion prompted Hisense to buy an additional 24,000 square meters of land adjacent to the factory. The extra land, along with a planned injection molding plant and other property, means the company owns close to 100,000 square meters of space in Atlantis. This shift in production happened as the company moved its head office to Cape Town from Johannesburg.

"This gives a very clear intention that we are here (in South Africa) for the long haul. We want to expand the business over the next few years and introduce new manufacturing into the region," said Khan.

Two other reasons for choosing the site at Atlantis are its proximity to Cape Town's port, and the ready availability of local skilled labor after the closure of a different appliance company that had been based in the area. Atlantis is poor and the jobs offered will no doubt boost its struggling local economy and mitigate rampant unemployment.