LSKHouse sees great Latin Amer­ica po­ten­tial

China Daily (USA) - - BUSINESS - By ZHONGNANand ZHANG YU in Tang­shan, He­bei Con­tact the writ­ers at zhangyu1@chi­nadaily.com.cn and zhong­nan@chi­nadaily.

LSK House Tech­nol­ogy Co Ltd, a lead­ing Chi­nese man­u­fac­turer of steel houses, said it had signed a joint-ven­ture agree­ment with a US build­ing com­pany to con­struct a fac­tory in Mi­ami to make light steel-framed hous­ing.

The Chi­nese group, based in Lang­fang, He­bei prov­ince, said it will in­vest $60 mil­lion in the fac­tory and con­trol 90 per­cent of the eq­uity in the joint ven­ture. LSK­said it will send semifin­ished hous­ing com­po­nents to the joint ven­ture in Mi­ami for fur­ther pro­cess­ing.

Part­ner JMC Lopez, the US con­struc­tion com­pany, will hold the re­main­ing shares in the joint ven­ture.

Con­struc­tion of the fac­tory will start in Novem­ber. After com­ple­tion, it will have a ca­pac­ity to man­u­fac­ture 1 mil­lion square me­ters of steel houses an­nu­ally and the units will be sent to cus­tomers in Chile for fi­nal as­sem­bly.

LSK House said the agree­ment was signed dur­ing the 10th China-LAC busi­ness sum­mit held in Tang­shan dur­ing Shao Kun, the week­end.

Aside from Chile, the joint ven­ture will also sell its houses to other LAC (Latin Amer­i­can and Caribbean) coun­tries.

“LAC coun­tries are a great mar­ket for steel-framed houses, which are lighter, eas­ier to build, and more im­por­tantly, have good anti-seis­mic prop­er­ties,” said Shao Kun, pres­i­dent of Lang­fang Hualu Tianyu Group, which owns LSKHouse.

LSK House Gen­er­alMan­ager Shao Jie said con­struc­tion of steel-framed houses was about 50 per­cent faster than tra­di­tional meth­ods of con­struc­tion.

LSK House claims its steel­framed houses can sur­vive ma­jor earthquakes that ex­ceed mag­ni­tude 9.0 on the Richter scale.

“That’s the main rea­son why the steel houses are wel­comed in Chile,” said Shao, who added that more than 2,000 LSK­made houses had been built there. “There are another 2,000 units to go and in the fu­ture the­mar­ket will be huge.”

The CEO of the new fac­tory, Gus­tavo Lopez, said that the po­ten­tial for saleswas­not only in the LAC re­gion, but also through­out the Amer­i­cas.

Gus­tavo said China had high-qual­ity steel, while the US had a fa­vor­able ge­o­graph­i­cal po­si­tion and tax poli­cies in place when it came to trad­ing within the Amer­i­cas.

The CEO said LSK House’s cus­tom-made houses would be pop­u­lar with less af­flu­ent cus­tomers and the mid­dle classes in those coun­tries, be­cause its house prices were lower than tra­di­tional hous­ing.

LAC coun­tries are a great mar­ket for steel-framed houses ...” pres­i­dent of Lang­fang Hualu Tianyu Group

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