KANGER BULLISH ON GROWTH SPURT
Company expects to benefit from completion of new processing plant and property leasing venture in China
KANGER International Bhd is set to enter a new growth stage in the coming years with the completion of its bamboo processing plant in Jingzhou, China.
Executive director Joseph Wu Wai Kong said upon the commissioning of trial production in May next year, the bamboo flooring manufacturer would be able to better manage its raw material cost as the plant was surrounded by 2,428ha of mature bamboo that were ready to be harvested in stages.
This is estimated to provide 18,200 tonnes of raw bamboo, which translates to more than 435,000 sq m of bamboo flooring.
“We expect to benefit from the expansion of our operations in China from next year, not only in our bamboo product portfolio but also in the leasing business,” said Wu after the company’s extraordinary general meeting (EGM), here, yesterday.
Kanger is leasing out two commercial properties — a 19storey hotel and a six-storey building — that it owns in Jiangxi.
The hotel is expected to start operations by February next year.
The six-storey building is being specially outfitted as a one-stop “AutoCity” and will be handed over to the tenant this month.
“With a combined lettable floor area of 63,500 sq m, the two commercial buildings, once handed over, will provide the group with a steady recurring rental income from February or March,” he said.
In June last year, Kanger’s wholly-owned Shenzhen Kanger Bamboo Wood Co Ltd entered into a deal with Jingzhou County Industrial Park Construction Investment Co Ltd (JCIPC) to set up a bamboo showroom and research centre, and develop ecotourism in Hunan.
The estimated initial cost for the project is 150 million yuan.
Under the agreement, Shenzhen Kanger and JCIPC will set up a joint-venture company on a 70:30 basis.
It will focus on the manufacturing of bamboo products, processing of bamboo-related foodstuff and bamboo eco-tourism over three phases.