Recently, and then there are bathroom, plumbing and heating companies in North America to expand production, including Duravit and Derfanjia. Among them, Duravit announced the construction of a factory in Quebec, Canada, Derfanjia consider the next two years to spend 70 million U.S. dollars to expand the production scale of the U.S. factory in Kansas. Driven by smart bathrooms and other emerging products, the North American bathroom market has continued to expand in recent years, attracting a large number of companies to expand the scale of investment, after Kohler, LIXIL, Moen and other companies have also expanded their business in North America, the local market once again attracted attention.
Duravit to build the first production base in North America
Local time on July 17, Duravit issued an information release announcing the construction of a new ceramic factory in Matane, Quebec, Canada. The new plant, which will mainly produce ceramic sanitary ware, is expected to provide 240 jobs and is scheduled to begin production in early 2025. The new factory will introduce the world’s first electric drum kiln powered by hydroelectricity in the ceramic firing process. Compared to traditional ceramic factories, the use of this innovative technology will be able to save approximately 11,000 tons of carbon dioxide per year, making the new factory the first carbon-neutral ceramic factory in the world, according to Duravit.
Duravit said the Quebec plant is the company’s first production site in North America and will supply the local market. At the same time, all raw materials will be sourced directly from Canada and the U.S., further reducing emissions and ensuring the environmental performance of the supply chain.
The new plant has received support from both the Canadian and Quebec governments. The Canadian government will provide a repayable contribution of $19 million (€13 million) to the project through the Regional Economic Growth through Innovation (REGI) program, while the Quebec government will provide a loan of $11 million (€7.5 million) through the ESSOR program. The program is managed by Investissement qubec as a representative.
Derfan Home Expands U.S. Capacity at a Cost of $70 Million
Not coincidentally, recently announced the expansion of production capacity in North America, there is another German bathroom and plumbing company, De Fangjia (Viega). According to media reports, Viega plans to spend $70 million to expand production capacity at its McPherson, Kansas, plant. As the first wave of investment, Derfanjia will first spend $14 million to expand the U.S. production of the ProPress line of products to reach more U.S. customers.
Markus Brettschneider, CEO and President of Derfan Home, said, “As our business continues to grow, we will bring more capacity to the United States. Our investments in the U.S. will further support demand and capitalize on U.S. manufacturing talent, beginning with the expansion of capacity in Kansas.”
To date, since operations began in 2008, the Derfan Family McPherson facility has more than doubled its footprint and workforce, and is now approximately one million square feet in size. The new ProPress equipment generation line is expected to be in production by the end of the third quarter of 2023, with additional investments to follow.
For its part, Derfan Home said that in addition to the McPherson facility, the company will support its customers and partners through distribution centers in Reno, Nevada, and Carlisle, Pennsylvania, and plans to further expand its North American operations in 2024 and 2025.
North American market expansion, sanitary ware giants have increased investment
In the past two years, with the North American market receiving increased attention, many companies to accelerate the layout of the United States, Canada and other markets. In addition to Duravit and De Fangjia, Roca previously had relevant actions. In April this year, Roca announced the acquisition of bathroom cabinet manufacturer Madeli, located in the United States in the region of Florida, the acquisition amount was not announced. Madeli has about 500 sales outlets across the United States, the main products for the bathroom cabinets and supporting bathroom mirrors, wash basins and so on. Roca said Madeli’s product portfolio is complementary to Roca’s current product lineup, and the acquisition will provide the company with an additional 500 sales outlets in the U.S., boosting its sales growth in the U.S. market.
