Honor’s Shenzhen Factory Pays Workers 50% More than Industry Average
According to a report by Jiemian on Friday, smartphone manufacturer Honor opened its first smart industrial park to the public on Thursday. This industrial park is located in Pingshan District, Shenzhen, and mainly produces Honor’s high-end models such as the Magic 3 and Honor 50.
According to the news, there are 5 buildings in the park with a complete area of 135,000 square meters. The park is integrated with departments including R&D, new product testing, manufacturing, and delivery, with a total investment of 1 billion yuan ($156 million). Nearly 10,000 employees have settled in the park and will bring over 10 billion yuan’s worth of industrial output in the future.
“The park has broken the original model of many enterprises, integrating R&D, trial production, and batch manufacturing,” said Honor CEO Zhao Ming.
Song Yiwen, Minister of Supply Chain Management for Honor, believes that the reason the company built its own factory is because, for consumer products, manufacturing is an important element in product competition as it involves advanced technology, integration and cooperation all the while requiring the evolution of new technologies.
According to Honor, the park has industry-leading high-precision automatic manufacturing equipment. 75% of the production line work is completed by automation equipment of which 40% is independently researched and developed by Honor. The park is able to produce a smartphone every 28.5 seconds.
Although the park is highly automated, Honor still recruits many specialized workers. “Honor’s workers are paid 40-50% higher than the industry average,” Zhao said.
In the production line of the factory, automation equipment is mainly used in general steps such as patching, but manual assistance is still used in personalized links such as assembly inspection. For example, there are 24 workers in a line that produces the Honor Magic 3. Zhao said that Honor hopes that high wages will eventually bring about cost reduction and make the production mode move towards a positive cycle.
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According to Counterpoint Research, in the third quarter of 2021, Honor returned to a position within the top three companies of the shipment ranking list with a total shipment of 14.2 million units. The company’s market share has risen to 14.7%.
