05-09-2002: Latitude Tree to up production capacity

Rubber wood furniture manufacturer Latitude Tree Holdings Bhd is aiming to boost its production capacity to US$6.7 million (RM25.40 million) in turnover per month by June 30 next year, as part of its efforts to penetrate new markets.

Its corporate finance manager Yeoh Joe Son said the company was planning to invest RM9 million for its capacity expansion plan. Its plants are already operating at full capacity, producing US$5 million in turnover per month.

Yeoh said the production capacities of its Kapar and Kuala Selangor factories would be boosted by US$0.5 million and US$0.4 million respectively while its Vietnam plant by US$0.8 million.

"With the increased capacity, we plan to penetrate new markets such as Germany, India and South Korea and Iran," he said at a media briefing on the company's business strategy on Sep 5.

Latitude Tree exports 100 per cent of its products, with the US accounting for 70 per cent, Europe 10 per cent, Japan five per cent and the rest to the UK and the Middle East.

Its corporate strategist Chua Gim Hoa said Latitude Tree wants to balance its market exposure, which is currently tilted towards the US, to include new markets.

"Our capacity expansion will facilitate our plans to penetrate the new markets," he said.