Hayco Manufacturing, the global leader in fast-moving consumer goods from China, has announced the construction of manufacturing facilities at the Las Americas Free Zone near Las Americas International Airport and the Punta Caucedo Multimodal Port. The plan is to make the most of the tax-free import and export to the US and Europe and quicker shipment times for the company expansion. The DR has free trade import and export agreements with the United States, Central America, the Caribbean and the European Union.
The Dominican Republic factory will produce plastic injection-molded components and finished consumer goods, further boosting the output of a company that produces more than 135 million household and industrial products annually including liquid delivery systems, water filtration, power toothbrushes and household cleaning items for major brands.
To mark the symbolic start of construction last week, the company’s executive chairman Donald Hay stated: “While P&G will be the initial customer for the new Hayco facility, we are confident that, over time, the Dominican Republic location will prove attractive to other Hayco customers as well. Some customers have already expressed interest in locating their operations at this new facility and it’s highly likely that multiple customers will eventually be sourcing their products from our Dominican Republic facility.”
The Dominican Republic site will be Hayco’s first factory outside China. “Global expansion is key to our future serving major brands, and the Dominican Republic is ideally located to service many of our clients, a large percentage of which are located in the US,” Hay added.
“Shipping to the US from the Dominican Republic takes around three to six days, depending on ports, compared to the 18 days it takes to ship our products from China,” Hay said on the ground opening ceremony. “Most importantly, order to delivery lead times are around two weeks in the Dominican Republic compared to the current six weeks for China-manufactured products to the US.”
He added that similar major savings in time to market could also be achieved with the European market. Shipping time to Europe is around 16 days compared to the 34 days it takes to ship our products from China.
This means order to delivery lead times are expected to be around four weeks in the Dominican Republic compared to the current eight weeks from China-manufactured products to Europe.
The company stresses that the true benefit of this can be seen through reduced inventory hold and a faster reaction time to cater to dynamic market trends and needs.
“Fast shipping is essential if we are to continue to meet the needs of our clients, which include such major names as Procter & Gamble, Philips, Target, Walmart, OXO, Church & Dwight, Clorox, Karcher and 3M.”
The Hong Kong-based company will develop the 49,000 square meter site in the Las Americas Free Zone Park in Santo Domingo in two separate development stages. “The first stage facility covering 17,280 square meters factory will open in 2017 and employ around 750-1,000 people once fully operational. This will be followed by the construction of another 12,000 square meter facility that is scheduled to come on line in 2021, pushing the overall employment figures to 1,500-2,000 people.
Hayco is credited with being one of the first companies in China to build adequate housing facilities for their worker welfare.
http://www.hayco.com
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