Selangor, Malaysia, June 9--Ekowood International Bhd, a hardwood flooring manufacturer, expects sales to grow between 15 and 20 per cent this year with major contribution coming from new markets including West Asia and China, according to the Business Times.
Managing director Datuk Kelvin Tan Aik Pen said the company has to look for new markets, such as West Asia and China, as the European markets have matured and could only grow between 2 and 3 per cent a year.
“There are a lot of opportunities for expansion in West Asia and China,” he told newsmen after the presentation of Malaysian Timber Certification Council’s chain-of-custody certification to Ekowood in Kuala Lumpur yesterday.
He said in the United Arab Emirates, especially in Dubai, there is a massive development where demand for hardwood flooring is expected to surge.
For China, the company is concentrating on Beijing as the Chinese capital will host the Olympic Games in 2008 and timber is becoming popular there compared to carpet for flooring.
“We are basically establishing a distribution of network in these new markets. We are setting up showrooms and warehouses,” he said.
Tan said Ekowood, which is the subsidiary of TSH Resources Bhd, is putting aside an additional of RM1.5 million from the usual annual allocation of between RM5 million and RM6 million for the expansion programmes.
He said the company is also allocating between RM3 million and RM4 million a year for research and development.
Ekowood is Malaysia’s largest manufacturer of engineered solid hardwood flooring, with a market share of 14 per cent.
