HONG KONG: Huafeng Reveals Mainland Fabric Expansion Plans
Huafeng's main business is currently in the dyeing and bleaching of fabrics for garment manufacturers and distributors such as JC Penny, K-Mart and Disney.
But in a bid to extend this range it is in the process of buying a state-owned spinning mill in Hubei province for between 50-60 million yuan, in a deal that is expected to be completed this year.
The company is also expected to be fully operational at its new HK$10 million fabrics manufacturing plant in Fujian by the end of this month. Another HK$32 million will be used to increase its cotton and non-cotton processing capabilities.
Huafeng is investing HK$6 million to raise the processing capability of its waste-water treatment plant in the province, and is in talks with possible partners in South Korea and Taiwan.
The company's sales rose 6 per cent in the first quarter of the current financial year. In the financial year ended September 2002, it posted a 47 per cent rise in revenue to HK$290 million and a 39 per cent increase in net profit to HK$78 million.
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