Hisense’s expansion plans for Africa

Hisense’s Export Division will be providing Madagascar, Ghana and the Seychelles with products manufactured from its facility in Cape Town, South Africa.
The Hisense Group strategy has always been to expand its footprint throughout Africa. Hisense South Africa will act as its African HQ; as a result, establishing an Export Division three months ago to target regional Southern African countries initially. The Hisense manufacturing facility, which opened in June 2013 in Atlantis, Cape Town will play a pivotal part in providing these countries with high quality products at competitive prices.

Ebrahim Khan, Deputy General Manager Hisense SA, explains, “Currently, you will find Hisense products sold in almost 130 countries and regions. Establishing the international subsidiaries and export division in different segments to cover the surrounding countries for emerging markets is a key target for Hisense over the next three years. We entered the South African market in 1996 and Hisense has become a market leader in certain categories. We’ve particularly gained massive market share over the last 5 years. We have the right product mix centered on leading quality, technology and high end design. We see the potential to extend our footprint into the surrounding countries and are confident that the plant in Cape Town will allow us to capture market share in regions, where the GDP growth rates are at much higher rates than South Africa albeit from a much lower base.”

“The plant is capable of producing 400’000 TVs and refrigerators annually to support the growth into Africa and will ultimately create more jobs as the African market develops,” stated by Khan. “Hisense South Africa currently occupies 50’000sqm and owns an additional 50’00sqm of land in Atlantis to facilitate expansion plans in the near future.”

Currently, there is a local workforce of over 500 people who are taking part in a skills-transfer program being led by Hisense technicians and engineers from China. The positions at the plant are filled by previously unskilled and unemployed residents from the Atlantis area, who are now in training. In the next two to four years, Hisense aims to take the local workforce up to 12’000, and a solid strategy is in place to ensure this growth.

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