A house is built using the laminate wood panel from Leowood. (Photo supplied by the company)
Driven by prospective sales growth in Vietnam, Leowood Intertrade Co, a maker of laminate flooring, will spend 50 million baht to expand production capacity by two-thirds next year.
The move is aimed at achieving 2016 sales of 1 billion baht.
Chief executive Smarnchai Atipunumphai said company shipments to Vietnam were expected to boost export sales to half the total next year from 20% this year.
To support this sales growth, the company will increase production capacity at its factory in Chon Buri’s Phanat Nikhom district to 200,000 square metres next year from 120,000 sq m.
“Laminate flooring is very popular in Vietnam due to the country’s humidity problems, just like Thailand,” he said.
“Major markets for us include Ho Chi Minh City and Danang.”
Seven importers now market Leowood products in Vietnam.
Of export sales this year, 60-70% are expected to be from Vietnam, followed by Malaysia at 20%, then Laos and Cambodia.
Export sales will account for 20% of the total this year after no shipments in 2014 due to the stronger baht.
Some 60% of total sales are from property projects and 20% from retail outlets.
In the first 10 months of this year, the company achieved 500 million baht in sales.
The full-year figure is expected to come in at 650 million baht, up by 30% from 2014.
Thailand’s laminate flooring market was in good shape in the first half but has since slowed down due to the sluggish economy, Mr Smarnchai said.
However, the company has secured more orders from property developers planning to speed up construction of single houses and townhouses amid the government’s property stimulus measures announced in September.
Leowood yesterday launched a new product, iWood, an anti-termite, solid wooden flooring for outdoor use.
Made from rubberwood, iWood is priced at 1,600 baht a cubic foot and carries a 25-year guarantee.
Target customers for the new product, to be sold from next year, are consumers, furniture makers and property projects.