Kanger International poised to be world’s largest producer of bamboo products
08 Sep 2020
Kanger International Berhad is closer to its aim of becoming the world’s largest producer of bamboo products when its new bamboo processing plant and R&D centre in Jingzhou, China goes into full production in the fourth quarter of 2020.
The company, listed on the ACE Market of Bursa Malaysia Securities Berhad, has been in the bamboo processing business the last 16 years.
The new factory and R&D centre is part of a public private arrangement with the local Jingzhou government on a 70:30 basis, and was built at a total investment cost of RM121 million.
Kanger’s executive director Steven Kuah Choon Ching said, “Armed with the support from our strategic partner, the local government of Jingzhou, we are in a strong position to significantly upscale our bamboo processing business to become one of the world’s largest integrated bamboo producers in the world with both upstream (plantation) and downstream (processing, manufacturing and distribution) capabilities.
“The commencement of our new plant represents a key turning point for the Group. One major advantage of relocating our bamboo plant to Jingzhou is the ready availability of raw bamboo there. By partnering with the Jingzhou government, they will inject a bamboo plantation concession totalling an estimated 20,833 acres over three phases.
“The ready-to-harvest raw bamboo surrounding the plant will serve as a steady source of raw material supply in the production of bamboo products and acts as the key factor in the upscaling of our own bamboo products segment. By being less reliant on external supply sources in producing bamboo products, this would prevent us from facing problems such as supply shortages and sudden price hikes which could have material effects on the cost of raw material and our profitability.”
Market research estimated the value of the global bamboo market at US$68.8 billion (RM286 billion) in 2018. Worldwide, bamboo is fast gaining recognition as a sustainable building material source and a “greener” substitute for wood-based products.
Kanger will focus not only on manufacturing bamboo products but also the processing of bamboo related foodstuff and bamboo eco-tourism. This will attract more tourists to Jingzhou and encourage the setting up of more bamboo related businesses among the villagers.
Kuah said Kanger, backed by a healthy cash flow generated by its China operations, will also be establishing new revenue streams in Malaysia.
It recently purchased a parcel of land in Kuala Selangor for RM6.8 million.
Source: Malay Mail Posted on : 08 September 2020