Hisense keeps expanding in South Africa

The Hisense factory in Atlantis nears completion for its official opening in June.[Photo/Francisco Little]

Huge Hisense Appliance Industrial Park in South Africa entrenches the brand's successful global image

It's 2:30 pm and the large red electronic counter board on the factory wall registers the day's 439th flat-screen TV as it rolls off the assembly line. Above that figure glows the daily target of 700. The uniformed staff are bustling in the sanitized, climate-controlled environment—excitedly motivating each other to reach the target, eyes constantly flicking up to the counter.

Inside the cavernous Hisense factory, situated 40 km outside Cape Town, South Africa, in the rural town of Atlantis, size matters. Everything is large scale and the workers know it. Elton Jansen, Production Supervisor of the TV operation, said that after 45 days training, the staff are raring to go. "It's the culture of the people in this region to be competitive and with added incentives for work performance, they have no problem reaching their targets," said Jansen.

Achieving targets is embedded in the Hisense corporate consciousness. Starting out as a small radio factory in China in 1969, the company has grown into a global multibillion-dollar appliance and technology corporation. Hisense entered the South African market in 1996, originally based in Midrand Johannesburg, and now distributes to more than 3,000 chain stores and 500 home appliance stores.

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.