Chinese home appliance manufacturers are expanding their production of industrial robots, a move that would result to sizeable furloughs. 

Haier Group CEO Zhang Ruimin recently attracted public attention after his announcement that the leading Chinese home appliance manufacturer plans to lay off around 10,000 workers this year. This is on top of the 16,000 workers it laid off last year.

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According to the National Business Daily, furloughs have likewise been taking place in other home appliance manufacturers following the introduction of robots into the workplace and their increasing adoption as efficiency and productivity boosters.

Midea, an air conditioning equipment maker, has been widely using robots in its assembly line since 2010. The company had set up a team to design robots in 2012. As a result, Midea said automation has cut their labor cost by US$1.28 million in 2013.

Skyworth, a Shenzhen-based manufacturer, also told National Business Daily about its intended employee reduction plan. The company said it aims to integrate the use of robots, replacing 1,000 workers with a single automated manufacturing line.

Skyworth said that robot usage has been first introduced in 2012 in power product factories. In the same year, Skyworth was able to shed off 11 percent of its workforce. The company also reported that its production efficiency was strengthened by 31 percent.

The report went on to say that the integration of robotics in Chinese factories came after the country made its mark as the biggest market of industrial robots in the world. The growth of industrial robots in the country has been forecast to reach an annual rate of  35 percent, the report added.

GaoGong Industry Institute Chairman Zhang Xiaofei said the increasing adoption of industrial robots followed the rise in labor costs and manpower shortage.  He said automation would greatly help manufacturing firms that are facing increasing labor expenses, and would be a great solution for companies that experience difficulty in managing younger workers.

Tagsindustrial robots, Zhang Ruimin, Haier Group, National Business Daily