Ergomotion chooses Chihuahua to establish its operations center

Chihuahua

By Alan Gutiérrez

The state of Chihuahua has a strategic location that allows companies to have direct access to the US market , either through land, rail or air transportation; in this way, companies can respond more quickly to the demand of the main consumption centers. In addition, the availability of qualified human talent, with extensive experience in the manufacturing sector, stands out.

These characteristics, among others, have positioned the state as one of the most attractive regions for the installation of new companies.

According to the Ministry of Economy, at the end of 2020, the state of Chihuahua registered 623.3 million dollars for Direct Foreign Investment. The agency detailed that the manufacturing industries presented the greatest dynamism, reaching 466.1 million dollars in this period.

The Ergomotion company –incorporated with the Chinese company Keeson– and under the shelter of Tecma Group , inaugurated its first plant in Mexico with an investment of 30 million dollars.

At a 250,000 square foot location in Ciudad Juárez, Chihuahua, Ergomotion is dedicated to the manufacture of bed bases.

Keeson CEO Chris Yang said the company wants to make this plant its North American hub, and that in two to three years Ergomotion is expected to have as many as 1,000 employees. 

"Our goal is to strengthen this plant and open new facilities to serve our customers," added Yang.

According to Yang, this is the company's first production facility in North America. 

"The new operation responds to the need to increase product capabilities, oversee manufacturing functions and ultimately stay closer to Ergomotion's customer base in the United States," he said.

Currently, the company has two production lines, with which it is expected that, after one year, 500,000 bed bases will be produced annually. 

The plant includes manual and semi-automatic operations that support continuous improvement of customer service within the United States, ensuring a high-quality and reliable supply chain for Ergomotion products.

"It is our hope that around 80,000 beds will be manufactured per month, to generate a million when we have the capacities," he explained.

The company's plan was to open in October 2020, but they had to delay the program. "At one point we hesitated to continue, but we did not want to let go of the job opportunity," he added.

 

LABOR: MAIN ATTRACTIVE

For the directors of Ergomotion, the location and proximity to the United States was a crucial factor in deciding on the region; however, the main element was the skilled workforce that they found here.

“We saw many places around the world. We wanted to see opportunities outside of China and found that Ciudad Juárez has the best location and the best quality of work. So far, we are satisfied with Tecma's shelter services and the results of the work that the staff has given, ”said Yang.

“They are diligent and competent. When we came, we thought it was necessary to invest a lot of time to give them the training so that they achieve the quality that is in other parts of the world. However, our Mexican collaborators only needed one week to reach and even exceed the efficiency achieved in some of our operations in China. For this, we are very pleased with the quality achieved. In addition, the culture and openness of the employees means that we do not have communication problems with them ”, he pointed out.

It should be noted that this is the first phase of the project. "It depends on what our customers think we will consider increasing our production and recruiting more staff," he stressed. 

"We want to bring more technology, products and provide our customers around the world the best quality sleep solutions," he added.

 

START OF CHINA-MEXICO RELATIONS

In an exclusive interview for Mexico Industry, Fabián Santana, director of Promotora de la Industria Chihuahuense, commented that this investment is particularly notable, because it is one of the first that China has made in Mexico. In this sense, he considered that it is the beginning of the China-Mexico trade relationship.

He highlighted that, although there are companies of Asian origin in the region, these are from other countries, such as Japan (Nidec), Taiwan (Foxconn and Wistron) and Korea, but Ergomotion is from China.

“Chihuahua is one of the first states to receive an investment from China. We have investments from Europe and the United States but little history of companies from that nation that leave their country to settle outside their territory ”, he commented.

Regarding the particularities of working with China, Santana stressed that it has different methodologies and ways of doing business, as well as philosophy and times. Faced with this situation, he stressed that Chihuahua has been a pioneer in adaptation for foreign investment. “There are few states and even countries in the world that will be able to adapt their businesses to take advantage of the opportunity immediately. Chihuahua is one of them. This investment shows that we can open a new market. Similar operations are critical because they open the way to a new market in terms of investment, "he said.

 

TOWARDS A NEW MARKET

Fabián Santana highlighted that Ergomotion is a manufacturing company, but also a technology company, which is aligned with the business model that China has. 

“That country is not cost-competitive. Keeson develops proprietary technology; does not manufacture copied products. This opens the possibility for Mexico to become an innovator and developer of technology. China has already proven that the economic model can change to direct it towards technological added value and innovation. This bond opens the door for Mexico to continue on this path ”, he assured.

 

ERGOMOTION, LEADERS IN THE SEGMENT

Ergomotion is based in Santa Barbara, California. Ergomotion is part of the Keeson Technology Group family based in Jiaxing City, China. 

Ergomotion adjustable bases are designed to adapt to mattresses from different brands and to integrate seamlessly with existing bed frames. The products have been sold in more than 30 countries to more than 170 major brands. 

This new operation was carried out in collaboration with Grupo Tecma, a consortium that provides shelter s to companies that wish to establish themselves in the region. In the case of Ergomotion, Tecma provided legal services, employee hiring, administration, among others.

This operation is one of the 48 foreign investments that were made during 2020 and one of the 137 registered since 2016.

 

MORE INFORMATION

Company: Ergomotion (from Keeson)

Origin: Chinese

Initial investment: $ 30 million

Number of Employees: 60 Employees

Estimated Future Jobs: 1,000

Size of operations: 250,000 square feet