Zinus Secures Mattress Production and Logistics Hub in Georgia, USA
Annual Production and Supply of 1.8 Million Mattresses, Responding to Surging Online Mattress Demand
Zinus Mattress Production and Logistics Complex Center located in Georgia, USA, with a building area of approximately 92,900㎡.
[Photo by Zinus]
[Asia Economy Reporter Kim Jong-hwa] Global mattress and furniture company Zinus Inc. is establishing a mattress production and logistics complex base in the United States, the largest global furniture market. This secures one of the core business goals announced during last year's IPO: a mattress production and supply complex center within the U.S.
Zinus announced that its local production corporation's board of directors has resolved to invest in establishing a mattress factory in Henry County, Georgia, U.S., with an annual production capacity of 1.8 million units.
Through this, it will be able to meet the rapidly growing customer demand annually in the U.S. and global markets, and logistics management and customer service are also expected to be further strengthened. The U.S. local production-logistics complex center is anticipated to be an active response to the expanding online demand and rapid delivery requirements under the Covid-19 situation.
Zinus's U.S. mattress complex center will be established by acquiring land and existing buildings previously owned by offline retailers in the U.S., covering a total site area of 8,000,000 ft2 with a building area of approximately 1,000,000 ft2 (about 92,900 m2). Considering the secured land area, additional production and logistics facility expansions are possible at any time in the future.
The complex center also has optimal conditions to immediately utilize its own railway-linked facilities for production and distribution. Zinus plans to operate production facilities from early 2021 to produce and supply more than 1.8 million mattresses annually.
Georgia State and Henry County in the U.S. have promised active administrative support, including prompt permits, along with various incentive packages to ensure Zinus's plans proceed on schedule.
Atlanta, Georgia, where the complex center is located, is a key logistics area in the U.S. Midwest and South, with highways and railroads developed like a spider web, offering great advantages in logistics management across the U.S. Above all, it can completely shorten the lead time, which previously took 45 to 60 days by sea transport when importing products from outside the U.S., enabling Zinus to more aggressively target the U.S. market alongside its major channels such as Walmart stores, Walmart.com, and Amazon.com.
Zinus stated, "By establishing the largest mattress complex base in the U.S., which accounts for an absolute proportion of our sales, we have reached another turning point in the company's growth. With a highly automated production line and a mass production system capable of economies of scale, combined with the business competitiveness Zinus has accumulated, we will be able to expand transactions to various channels and customers in the U.S."
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Meanwhile, Zinus currently operates production corporations in China and Indonesia. The Chinese corporation is responsible for supplying mattresses to regions outside the U.S., including Canada, Europe, Australia, Japan, and Korea, as well as furniture to the global market, while the Indonesian corporation focuses on mattress exports to the U.S. region. With the addition of the U.S. complex center, once the mattress supply capacity to the core U.S. market stabilizes, it is expected to accelerate global growth strategies and business expansion strategies targeting the worldwide market.
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