SHANGHAI, PRC—Home Furnishing International (HFI)  is increasing its investment in large volume and low margin  rotary screen printing to better serve the bedding industry in its primary facility in Rugao, China, according to David Li, principal, CEO and president of the privately held firm, with annual sales estimated over $200 million.

HFI is investing more than $20 million in the Rugao facility, Li said and over the past year, doubled the size of the Rugao plant to one million square feet under the direction of Shen Jian, president of Shanghai Orient West Decorative Fabrics, the Chinese division of Home Furnishing International. 

“The Rugao plant currently has a 12-color printing and piece-dyeing capacity of one million meters of wide width fabrics per week and is running at full capacity with 12 dyeing and two high-speed printing ranges,” Li said. “These printing ranges run at 80 meters per minute. Four additional printing ranges will be installed by the end of 2013, bringing the total annual capacity to 200 million meters of wide width fabrics.” David Li

Within five years, Li expects to be doing two thirds of his overall business in printed bedding fabrics producing four million meters a month of either PFP or piece dyed base cloth in wide widths of 250-280 cm. He expects to serve up to 30 large bedding customers with facilities located primarily in China who are capable of buying the 20,000 meter print runs produced by HFI.  

HFI is also printing its own finished bedding range under the name ‘Palmetto Printworks’ and ‘HFI.’ Li points to his successful print business with Walmart as an example of the type of customer he is attracting.  He said he has placed a 120 sku printed pillow program with Walmart. “Print was out of fashion for a long time but it’s coming back into the bedding industry in a big way, Li emphasized.

Li firmly believes that the woven piecegoods business is declining in China and the USA although he sees some improvement in the US with increasing housing starts and QE3. “We are lucky as the total picture in China in respect to furnishing fabric is not that bright but seems we are at the right time at the right place with a correct product,” he observed. “Current trends are interesting and we are geared up well: I sensed the beginning of warp knits 3 years ago and is now in full swing replacing chenille”, he stated. “Warp knit is a major substitute for sofa fabrics in furniture segment,” he said.  It has advantages such as durability and can be made to 30,000-100,000 Martindale, making its surface more abrasive resistant though it is not yarn dyed. “The market has received it positively as trendy, soft, and fashionable and is perceived as a contemporary choice,” he said. Very importantly, warp knit production is ten times faster and the price tag is $3-$5 US against $4-$10 a meter of chenille and is making positive headway.”  

Although a weaver at heart, Li points to the difficulty of attracting labor to his woven business with the retirement age of 45 for women and 50 for men, he said.

“We are firmly committed to being a vertical manufacturer and continue to expand and invest in our mills, our machinery, our product line and our people,”   Li said. “At a time when many of our competitors are cutting back on research and development, we are adding new technologies and capacity to continue our evolution as a leader in the global market.”

In addition to the new printing facilities, HFI said it has invested in modern machinery for yarn-dyeing, weaving, piece-dyeing, specialty printing and a full range of finishing operations, including scouring, Sanforizing, bleaching, sanding, brushing, calendaring, washing, tumbling, steaming, and specialty treatments and finishes. He said the facility also acquired customized equipment to produce and process faux leather. Li said he prints on piece dyed fabrics to give a richer look at very competitive prices. He anticipates producing several lines of upholstery solids a year from this effort in the future. 

“Our large capacity and diversified manufacturing capabilities can ensure that we will satisfy our clients’ needs for innovation, quality control, speedy delivery and better costs,” Li points out. “As a large vertical mill, we can perform better than those competitors who have to outsource with unreliable vendors. For example, right now nearly all of the top 10 bedding manufacturers in China are printing at the Rugao plant, and our initial production runs that were introduced at our first market in China have completely sold out.

“Based on the overwhelming positive reaction to our initial printed fabrics, we are launching a collection of our first printed bedroom ensembles for the United States market,” Li adds. “We are using our new facilities and equipment to offer a range of truly unique and innovative printed beds.” 

The increases in manufacturing capacity and product line are designed to support HFI’s ambitious plans for growth in the international market. “In spite of the current challenging economic climate, we believe there are many untapped markets for our products,” Li asserts.  

Li points out that the company’s international expansion has resulted in more than $50 million in non-U.S. and non-China business this year. Sales to Brazil, for instance, have been increasing at a rate of 20 percent or more for the past four consecutive years, under the direction of president Rodrigo Prieto. Business in Argentina has doubled in one year, under the direction of general manager Osvaldo Schenquerman, Li said. The first container of merchandise has just been shipped to Chile, under the direction of general manager Alberto Piffardi, Li stated.

“Our Mexican division has been operating for more than seven years, and resumed growth this year,” Li remarks. “We hope to launch our first line in Colombia next year, which will round out our South American strategy.”

Elsewhere, the company formed a strategic partnership with Goodrich Global in Singapore to service Southeast Asia, and five programs consisting of more than 250 SKUs are being shipped this year. Li said HFI and its associated companies expect to ship 10 million meters of fabric to Turkey this year. The company also is servicing clients in the Middle East with a warehouse in Lebanon, and earlier this year formed a strategic partnership in South Africa.

“We feel we are well-positioned for growth in major markets throughout the world,” Li adds. “For example, our 275,000 square foot distribution center in Gaffney, S.C. is now a duty-free zone, allowing us to better service our customers.