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Sleepyhead reveals expansion strategy in Australia
21
Oct '10
Sleepyhead, one of the major private manufacturers of New Zealand, has revealed its expansion strategy while arranging to start a new $35 million bedding factory in Melbourne. The company has come up with the details of its strategy for the new factory and intends to export beds to India as well as Sri Lanka, which have huge market potential.

The new plant is expected to be the largest in the entire Australasian region and is about to start from 1st December this year. It is expected to use the eco-friendly foam manufacturing technology that is being used in its headquarters at Otahuhu in Auckland. It uses liquid carbon dioxide in place of methylene chloride to manufacture the eco-friendly foam.

Australia is a vital market for the bed manufacturing companies and the company aims to enhance its production and emerge as a global brand. Currently, the company holds the number one position in New Zealand but it aspires to become the prime manufacturer in Australia in three to four years' time.

The company has been exporting to Australia since 1980s before it started its production in Brisbane in 1996. The company's latest venture in Melbourne will enable it to double its manufacturing capacity in Australia.

Sleepyhead has a share of eight percent throughout Tasman and has factories in both Brisbane and Perth. Currently, it manufactures and sells maximum number of beddings in Australia than in New Zealand. Around 500 workers are employed in the company and they together manufacture over 300,000 pieces of bedding in its five plants across Australia and New Zealand every year.

In spite of the challenging market conditions which have forced several manufacturers to shift to overseas location, the company is focused in New Zealand. The company has survived through tough times and has been successful because of its readiness and ability to accept change and bring about innovation. An instance of this is its investment in a new $10 million plant in Auckland, last year.


Fibre2fashion News Desk-India


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