Kanger group’s main bamboo processing plant in Jingzhou, a venture in collaboration with the local government of the Chinese city. is on target to become the world’s largest producer of bamboo products with the commencement of a new high-tech bamboo processing plant and R&D centre which was developed in collaboration with the local government of Jingzhou in Hunan Province, China.
“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. “Our venture upstream into bamboo plantation concession represents a critical component in building a resilient business model. A continuous steady stream of raw bamboo supply strengthens the success factor of this project, laying a solid and sustainable foundation for the business, ” said Kuah.
Market research estimates that the value of the global bamboo market stood at US$68.8bil in 2018. Worldwide, bamboo is fast gaining recognition as a sustainable building material source and a “greener” substitute for wood-based products. It can also be used as a form of “renewable energy” as burning bamboo charcoal to generate electricity produces less pollutants as compared to standard charcoal.With construction of the plant and commissioning of the machinery and equipment now completed, testing works are being carried out, with full commercial production commencing in the fourth quarter of 2020.
Sales of Classen products have been encouraging and proved to be a good complement to the group, generating revenue to the group whilst the group scaled down its production of in-house bamboo products to make way for the relocation exercise of the bamboo plant.To enhance the distribution network of the group’s in-house as well as third party products, the group signed on distributorships with third party dealers across China.
On the land where the previous bamboo processing plant was located, Kanger has constructed two commercial buildings with a total net lettable area of 683,777sqft. The group has signed 10-year agreements to lease these buildings for RM11.1mil a year.
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