Haier Smart Home Reopens Domestic Factories and Resumes Production at Full speed

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QINGDAO, China, Feb. 28, 2020 /PRNewswire=KYODO JBN/ --

Following the strict measures put in place for the control and prevention of

Covid-19, Haier Smart Home Co., Ltd. ("Haier", Shanghai: 600690), the world's

leading home appliance producer, has announced that all domestic factories in

China have returned to full capacity as of February 25. The announcement comes

after Haier's continued efforts to maintain its global capacity, which saw the

producer achieve an overall guarantee rate of over 90% on overseas orders

during the outbreak.

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Despite limited capacity brought on by Covid-19, Haier maintained normal

production levels as a result of its strong global supply chain and rapid

response to the epidemic. With a complete international operation and supplier

system, as well as supplier resources spanning the Americas, Southeast Asia,

South Asia and Europe, Haier fulfilled 99.8% of orders throughout February

2020, with 60% of products manufactured in local factories overseas. Meanwhile,

Haier's logistics team closely monitored changes in global ports and shipping

policy alerts and adjusted its resources and logistics plans accordingly to

ensure the timely shipment of all orders.

Since February 17, all of Haier's domestic factories - except three in Wuhan -

have resumed production with additional strict measures to prevent and control

the spread of the epidemic, on top of those recommended by the Chinese

government. 10 Haier industrial parks have been recognized by the local

government and seven have been highlighted by Chinese media as leading examples

for their epidemic protection and prevention work. As of February 25, the three

Wuhan factories have also reopened with similar measures in place to keep

workers safe.

In addition to reopening factories, Haier's key domestic suppliers are

gradually resuming normal business operations. To date, more than 90% of

suppliers have reopened their doors with an 80% work resumption rate and a 95%

guarantee rate. The guarantee rate is expected to reach 100% by the end of

February.

Further to its global supply chain, Haier was able to lessen the impact of

Covid-19 due to its early adoption of intelligent manufacturing. Across its 122

factories, Haier has integrated a variety of automated production processes

including automatic boxing and bagging, refrigerator wrapping and gluing, as

well as product-specific processes for washing appliances and air conditioners.

Haier Smart Home's five sectors have also introduced 108 flexible production

lines using integrated automation solutions and applied intelligent

technologies such as AI, big data analysis, 5G and AR to help conduct a range

of factory tasks, including visual product inspections for refrigerators,

measuring the noise of washing machines, detecting unusual sounds in air

conditioners, AR-assisted remote equipment maintenance and more. These

intelligent manufacturing processes and technologies enabled Haier to continue

normal production and logistics during the outbreak, as well as improving

overall line efficiency and reducing staff turnover.

Source: Haier Smart Home

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