Third tiles-making plant to help Guocera boost market share

  • Business
  • Saturday, 27 Mar 2010

KUALA LUMPUR: Ceramic tiles maker Guocera Holdings Sdn Bhd aims to strengthen its market dominance in Malaysia once its third plant in Kluang, Johor, starts operations by the first quarter of next year.

Managing director Richard W.C. Ng said the company currently controlled the local ceramic tiles market with about 28% share, supported by its two facilities in Kluang and Meru in Klang.

“By the time the third plant starts operation, we expect to produce 38.3 million sq m of ceramic tiles yearly,” he said yesterday after a joint-venture (JV) agreement signing ceremony between Guocera and Infrastructure Development and Construction Corp (LICOGI) of Vietnam.

The JV will see the parties setting up a limited liability company, Guocera Tile Industries (Vietnam) Co Ltd, to acquire and manage LICOGI’s tile factory in Dong Nai, Vietnam.

Guocera would hold 97% of the new company while the remaining would be held by LICOGI, Ng said, adding that the move would boost Guocera’s business in the international market.

“Currently, about 40% of our products are exported to more than 50 countries. Having this JV will uplift our product distribution in Vietnam, apart from building our brand and capability,” he said.

He added that Guocera would also help LICOGI in terms of technology transfer, research and development of tile products, and the marketing and distribution of various tiles in Vietnam.

“Over the next two years, the JV company will further invest in technologies and capacity to bring more efficiency and flexibility to production and upgrade to a quality comparable to world-class standards,” he said.

Guocera is a wholly-owned unit of Hong Leong Industries Bhd.

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