US flooring firm trades Shanghai for S’ville
US-based hardwood f looring manu f a c t u r e r A H F P r o d u c t s h a s a n nou nced t hat it w i l l f u l f i l it s orders solely out of its Sihanoukville facilit y, and will cease operations in Sha ng ha i, China, repor ted Hardwood Floors Magazine.
The Shanghai plant was part of an acquisition with Texas-based LM Flooring last year. It produced engineered flooring products for the Canadian, European, Asian and Australian markets, reported the magazine, published by Missouri-based international non-profit trade group National Wood Flooring Association.
AHF Products president and CEO Brian Carson was quoted as saying: “After a strategic review of the business, we made the difficult decision to close our Shanghai plant.
“Decisions that impact the lives of our employees are never easy, and I’d personally like to thank the Shanghai team for its contributions to the business and our customers.
“We will work closely with them to support them throughout this transition, and several key leaders will be transferring to our Cambodia plant, further strengthening the team there,” he said.
Preah Sihanouk Provincial Hall spokesman Kheang Phearum told The Post that AHF Products, registered in Cambodia as Fine Flooring (Cambodia) Co Ltd, built its factory on an 8ha plot in Sihanoukville Special Economic Zone (SSEZ) located in Bit Traing commune’s Pou Thoeung village in the province’s Prey Nop district.
The plant has been in operation since 2017 with capital investment of $1 million, he said. It has a production capacity of 93,242sqm of hardwood flooring per month and employs 750 Cambodian workers.
He added that the company is now doubling its production to meet market demand in the US.
“Scaling up its production chain will prove a boon for Cambodia, yielding more taxes for the state and contributing to economic growth, as well as providing locals with jobs.
“The company manufactures plank boards and plywood for export to the US,” he said.
Over the past 12 months, AHF Products has tripled its capacity in Cambodia with plans underway to double again through the first quarter of next year, reported Hardwood Floors.
The company aims to expand its pressing, milling and finishing capabilities along with new dormitories next month to support its expanded workforce, it said.
The Preah Sihanouk Provincial Hall reported that, as of this month, there are 217 factories operating in the province worth more than $1.14 billion which have created at least 11,710 jobs. Of these, 151 are in SSEZ.