Kanger International to list on main market in two to three years

KUALA LUMPUR: Kanger International Bhd (Kanger International), a China-based bamboo maker which made its debut on the ACE market yesterday, seeks to list on the main board in two to three years.

It is in talks with local real estate developers and hotel operators to supply its products, with a hotel in Sabah having adopted its offerings, managing director Leng Xingmin told reporters after the share debut here yesterday.

The company is expanding into Malaysia in the wake of growing competition in China, a market where Alliance Research estimates to have 200 bamboo flooring makers.

Malaysia has abundant supplies of bamboo but no one is tapping the resource, Leng said.

Although the demand for bamboo across the world is expected to pick up five per cent every year amid calls for the adoption of greener materials in industries such as construction, the material is underutilised in Malaysia, Leng said.

The listing would help Kanger promote the use of bamboo and increase brand awareness, he added. Kanger currently operates two plants in China and plans to set up a manufacturing plan here after the completion of a feasibility study by mid-2014.

The plant would allow it secure more supplies for customers in Malaysia and China, Leng said, declining to offer investment figures.

According to Alliance Research, it is too early for investors to be excited as there are substantial execution risks due to the intense competition within the industry.

Despite the eco-friendliness of bamboo flooring, consumers generally prefer hard flooring such as tiles and marble due to their durability and ease of installation, it said in a note.

There is also increasing consumer concern on the potential health risk from formaldehyde-based adhesives used in bamboo flooring products, the research firmsaid.

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Kanger International to list on main market in two to three years