The company also wants to expand its export markets, which make up less than 10 per cent of its production capacity, according to executive director Ng Chee Wai.
"We believe our company is one of the beneficiaries of the US-China trade war as US (buyers) are shifting to other countries to get the products they need,” he said in a media statement. "Our plant has the space to triple the production capacity from what we’re producing now. We’re very positive that this segment will be contributing positively to the group in the coming years.”
Scanwolf said it will add one unit of pressing machine from the proceeds raised through a proposed rights issue of irredeemable convertible unsecured loan stocks with warrants.
This exercise is expected to raise RM10.5 million, the vinyl flooring manufacturer said in a statement today.
Through its wholly-owned subsidiary Scanwolf Flooring Industries Sdn Bhd, the group specialises in the design, manufacturing and distribution of luxury vinyl tile (LVT) flooring.
The LVT flooring market is projected to grow 11.7 per cent to US$31.4 billion by 2024 from US$18 billion in 2019, according to a Markets and Markets research report cited by the company.
Ng said the ongoing National COVID-19 Immunisation Programme has provided much-needed optimism on the growth of the local property market this year, which in turn will boost demand for the company’s tiles.
Based on the vaccination schedule, Malaysians should achieve herd immunity by the end of the year.
"With that, Scanwolf will be well positioned to ride on this recovery of the property market.
"However, we strongly believe that when life is back to normal, the landscape of this sector will change.
"LVT will be the alternative flooring option for developers, consumers, architects and interior designers to consider due to its lower cost and that it is easy to remove,” he said.
At the mid-day break, Scanwolf stock rose 2 sen to 36 sen. - Bernama