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It’s 2：30 p.m. 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.
Big investment
General Manager of TVs， Albert Li， said there are currently 84 local staff members working at the TV operation， and 150 to 200 at the refrigerator factory. Once fully functional， the $39 million invested in phase one is expected to directly create 600 local jobs， and indirectly provide an additional 2，000 or so job opportunities， while producing 400，000 refrigerators and TVs every year.
At the factory， Li is pleased with progress and interacts easily with staff， giving words of encouragement and advice. He’s been with Hisense since 2008 and， while he misses the port city of Qingdao， in China， where Hisense is headquartered， he’s at home in the Atlantis world of motherboards， capacitors and microchips. In the packing room he proudly shows off an exhibition monster TV.“This 110-inch screen is the biggest TV in the world， and will one day be made here in Atlantis，” he said， smiling in his hair net and white coat.
These big ambitions are reflected in the Hisense complete knock-down （CKD） kits operation， which is significant in the South African context， as the company pushes to contribute to the re-industrialization of the South African economy.
Khan is not perturbed by the perception held by many that Chinese goods are often of low quality.
“What makes our business different from other Chinese companies is that we already have a consumer market. We have a 30-percent market share of TVs， and our popularity with our customers proves that we sell quality products.” He also said that the brand is growing in large retailers， and discussions with marketing agencies are underway as the company looks to build up its brand even further in the local market.
“Consumers are not too concerned with the origins of the brand， but rather look at price， quality， technology and service. We focus on these aspects，” said Khan， who added that the company has set up a unique repairwhile-you-wait system for TV owners. Hisense South Africa will focus on SubSahara Africa as a region， but only after the brand is dominant in the South African market， said Khan， which he expects to be the case in 18 to 36 months. The brand already has a strong presence in Egypt and Nigeria， and sells products in 15 African countries.
Corporate responsibility
Khan believes it is important to first build up an import market where consumers buy the Hisense brand based on price， quality， technology and service and then invest in domestic manufacturing.
This global business model applies to the company’s TV， refrigerator and future tablet and phone operations.
“We want to change perceptions of how Chinese companies are viewed. Staff at the factory feel they are part of a global company， with heritage in China. We have to find the balance between local， Chinese and global，” he said.
Khan is also well aware of the need for corporate social responsibility， and the sometimes-difficult labor environment in South Africa. Hisense has built sporting facilities for staff， and provides performance incentives coupled with staff recognition in an effort to develop a positive culture within the company.
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.
Big investment
General Manager of TVs， Albert Li， said there are currently 84 local staff members working at the TV operation， and 150 to 200 at the refrigerator factory. Once fully functional， the $39 million invested in phase one is expected to directly create 600 local jobs， and indirectly provide an additional 2，000 or so job opportunities， while producing 400，000 refrigerators and TVs every year.
At the factory， Li is pleased with progress and interacts easily with staff， giving words of encouragement and advice. He’s been with Hisense since 2008 and， while he misses the port city of Qingdao， in China， where Hisense is headquartered， he’s at home in the Atlantis world of motherboards， capacitors and microchips. In the packing room he proudly shows off an exhibition monster TV.“This 110-inch screen is the biggest TV in the world， and will one day be made here in Atlantis，” he said， smiling in his hair net and white coat.
These big ambitions are reflected in the Hisense complete knock-down （CKD） kits operation， which is significant in the South African context， as the company pushes to contribute to the re-industrialization of the South African economy.
Khan is not perturbed by the perception held by many that Chinese goods are often of low quality.
“What makes our business different from other Chinese companies is that we already have a consumer market. We have a 30-percent market share of TVs， and our popularity with our customers proves that we sell quality products.” He also said that the brand is growing in large retailers， and discussions with marketing agencies are underway as the company looks to build up its brand even further in the local market.
“Consumers are not too concerned with the origins of the brand， but rather look at price， quality， technology and service. We focus on these aspects，” said Khan， who added that the company has set up a unique repairwhile-you-wait system for TV owners. Hisense South Africa will focus on SubSahara Africa as a region， but only after the brand is dominant in the South African market， said Khan， which he expects to be the case in 18 to 36 months. The brand already has a strong presence in Egypt and Nigeria， and sells products in 15 African countries.
Corporate responsibility
Khan believes it is important to first build up an import market where consumers buy the Hisense brand based on price， quality， technology and service and then invest in domestic manufacturing.
This global business model applies to the company’s TV， refrigerator and future tablet and phone operations.
“We want to change perceptions of how Chinese companies are viewed. Staff at the factory feel they are part of a global company， with heritage in China. We have to find the balance between local， Chinese and global，” he said.
Khan is also well aware of the need for corporate social responsibility， and the sometimes-difficult labor environment in South Africa. Hisense has built sporting facilities for staff， and provides performance incentives coupled with staff recognition in an effort to develop a positive culture within the company.