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Gefung to boost output capacity at Shanghai plant
New Straits Times, 21 February 2008
GEFUNG Holdings Bhd - which processes, trades and provides contract workmanship of high quality marble and granite slabs - plans to increase the capacity of its Shanghai plant by 10-15 per cent this year, in anticipation of rising demand from China's property and construction boom.
The Shanghai plant currently operates at 560,000 sq m per annum. Marble production capacity in Malaysia has also increased by 155,000 sq m per year with investment in additional equipment last year.
"The company also plans to widen its sales and marketing network to include Tianjin, Chong Qing, Ningpo, Qing Dao and Cheng Du," Gefung said in a statement.
Gefung is an established international player with 66 per cent of revenue and profits coming from operations in China. The remainder comes from jobs in Malaysia and Turkey.
"The company anticipates further demand for quality imported marble and granite slabs in China ahead of the Shanghai World Expo in 2010. Gefung currently has an order book of Rmb 66.5 million in the likes of the Shangri-la Group, Marco Polo and Havana and expect all these projects to be completed within the 2008 financial year," it added.
For the full year ended December 2007, Gefung reported net profit of RM14.75 million on the back of RM61.16 million revenue. Earnings per share for 2007 was 9.53 sen compared with a loss the preceding year.
The group last year acquired marble quarry operations in Turkey to ensure consistent supply and controlled pricing and quality. There are also plans to set up a marble processing plant by the fourth quarter of 2008.
"This puts Gefung in a strategically viable position to supply marble to the numerous luxury and large-scale projects that are slated to be built in the Middle East region over the next five years," the company added.
In August last year, the Saudi Economic and Development Co (SEDCO) via its affiliated company, Pacific Quest acquired a 22 per cent stake in Gefung. SEDCO is a private wealth management company that owns over 300 properties around the world.
"This strategic joint venture with SEDCO puts Gefung in a prime position to develop the Middle Eastern and North African markets, in addition to other sub-Indian and Central Asian countries," it said.
Gefung's projects in Malaysia have included the prime minister's office and residence, the Putrajaya mosque, the Kuala Lumpur International Airport and the Kuala Lumpur City Centre development.
Overseas, Gefung's credits include Grand Hyatt in Tokyo, Shilla Arcade in Korea and numerous projects in China, including the RM11 million Keppel One Park Avenue Condominium, the RM5 million Shangri-La Hotel in Pudong and RM6.2 million Electric Power Office building in Jiangsu.
