Chinese Wood Producer Gains Ground With Alliance

Beijing, China, April 27, 2006--Leading Chinese wood flooring provider, Power Dekor, plans to double its output of multi-layer parquet under the Swedish brand of Kahrs to 3 million square metres by the end of the year, according to the China Daily. So said company officials yesterday in Beijing. "We will build another factory within the next two years, which can further increase the output to 6 million square metres," said Guo Hui, vice-president of Power Dekor. Multi-layer parquet is a wooden floor comprising a top layer of solid wood plus additional layers of wood or wood-based materials. Guo was speaking at an event recognizing the one-year anniversary of the Chinese firm's alliance with the largest Swedish wooden floor manufacturer, Kahrs Group. Last March, the two companies signed a 10-year agreement. Power Dekor won the exclusive right to produce and sell products under the Kahrs brand. The Swedish company provides support in production, purchasing, logistics, sales and marketing. Guo said that as well as selling Power Dekor's own laminate flooring in over 1,450 outlets across China, the company has established more than 60 boutiques and 200 'shop-in-shops' nationwide which sell Kahrs multi-layer parquet. Laminate flooring does not have solid wood on the surface. Multi-layer parquet is becoming increasingly popular around the world, as it looks like solid wood but costs less than the real thing, Guo said. "We have set up a production standard and quality inspection system in the first year and will devote ourselves to cutting costs in the second year, amidst fierce competition," Guo said. Sven Almqvist, vice-president of Kahrs Group, said the Swedish brand first emerged in 1857. In 1941 it got a patent on multi-layer parquet, which he claimed was the first of its kind in the world. So far, 17 million square metres of the product have been sold worldwide, with a global market share of 17 per cent, according to Kahrs. "I have great confidence in this co-operation, because on one side is a competent Chinese manufacturer of wooden floors, and on the other side is one of the most well-known European brands, with a long tradition and high-quality standards," Almqvist said. "Our target is to create the most competitive product portfolio in the world, with a strong market share, and finally become the world's No1 player," he noted.