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Coricraft starts production at new factory
Major local furniture manufacturer, Coricraft, has started production at its new R50-million factory in Gauteng, which, according to a report published in Business Report, will cut its manufacturing costs and improve services to retailers.
Quoting managing director David Jacobson, Business Report says the company was making 230 sofas a day but the transportation costs for each sofa was about R300 and this would now be sharply reduced.
He says that the company imports its wooden furniture from India, China, Vietnam and Indonesia because South Africa's labour costs are too high to make the furniture locally. However, shipping costs for sofas pushed up their prices and as a result it was possible to make sofas in South Africa.
Business Report says that Coricraft currently has 31 stores and plans to open three or four new stores each year.
Read more:
- Business Report: Coricraft pins hopes on new production site in Gauteng
