Rinnai Corp.'s Chinese subsidiary¬¬¬ will build a new factory in the Fengxian District of Shanghai, China, in anticipation of future expansion of the Chinese market.
Shanghai Rinnai has achieved steady growth manufacturing and selling gas hot-water units, gas boilers, gas stoves, and other appliances. Demand for gas appliances in China is predicted to keep rising, bolstered by rising worker incomes, the expansion of infrastructure, on overall economic growth.
Shanghai Rinnai’s main production base will move from Pudong to the new facility in Fengxian. The new plant will double Shanghai Rinnai’s production capacity, giving it the capable to manufacture one million hot-water units and 500,000 stoves annually.
Construction on the 67,901-square-meter facility is expected to wrap up in August 2015, with operations scheduled to start in August 2015.
Rinnai Corp. (Nagoya, Japan) owns 50% of Shanghai Rinnai Co. Ltd. Shanghai Gas (Group) Co. Ltd. owns 45%, and Saisan Co. Ltd. owns 5%.
Shanghai Rinnai had annual sales of 1,118 million Chinese yuan (approx. 14.2 billion Japanese yen or USD $140 million) in its fiscal year 2013, which ended March 31, 2013. The company had 704 employees as of December 2012.
The company had unit sales of about 500,000 hot water units and boilers in fiscal 2013, and expects that number to climb to roughly 550,000 in fiscal 2014. Unit sales of stoves were roughly 220,000 in fiscal 2013, expected to be over 250,000 in fiscal 2014.
to Daily News