This confirms the Group's leadership position in the Chinese market, where in 2016 it has achieved a 20% growth compared to 2015.
The new Zhong Zhi Xin plant was inaugurated in late October in Luo'An, Province of Anhui, China. Zhong Zhi Xin is an important Chinese furniture manufacturer, for which SCM Group has provided project consulting, and all technologies for woodworking, all part of a great project with a total value of 4.6 million euro.
Zhong Zhi Xin is a leading company in the Chinese market. It specialises in "European Style" furniture production, known for its major use of materials such as solid wood and veneers. Founded in the 1990s, the company produces living-room and bedroom furniture, as well as sofa beds, exclusively for the domestic market, and distributed through a network of 800 authorised dealers. It currently employs some 3,000 workers and in 2015 earned total revenues of around 68 million euro (about 512 million RMB). In 2015, as part of a major modernisation project strongly backed by the local government, Zhong Zhi Xin acquired a plot of land of more than 1 million square meters within an industrial park in Luo'An, in the Anhui Province. The project involves the construction of a complete production line dedicated to manufacturing "typical" solid-wood furniture and, at the same time, a diversification line dedicated to producing a range of panel-based furniture. The new plant is only the first step in a high-investment project which includes a second step by the end of 2017 with additional machinery for processing panel-based furniture.
The involvement of SCM Group began with the development of an important technical consulting project, a service offered by our Engineering Division. It did focus on diversifying the product range, including panel-based furniture, and on modernising the machinery used for the traditional solid-wood products. This was followed by SCM providing all the production equipment for the new Zhong Zhi Xin plant: 14 machines for panel processing, 10 for solid-wood processing and 3 painting lines. Production lines that will help the company increase its production output and improve and stabilise the quality of its finished furniture products.
These important commercial ties confirm SCM Group's leadership position in the Chinese market, where it has been operating since 2004 through its Chinese headquarters, logistic and production centre located in Shenzhen and employing 65 workers. Thanks to its extensive know-how and wide range of solutions, the Group can provide technological answers to machining wood and other materials not only for both large industrial corporations, but small and medium-sized companies as well. Technologically advanced solutions that represent industrial Made-in-Italy excellence. In addition to our Shenzhen offices and plant, SCM has showrooms and sales offices in Shunde, near Guangzhou, and Beijing, which help cover the entire territory of this vast country.
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