The world's largest footwear producer, Yue Yuen Industrial (Holdings) Ltd, on Tuesday said it expects to spend between $10 million and $20m on two new acquisitions before the end of this year.

The company, whose customers include industry giants Nike, Adidas and Timberland, said the acquisitions, expected to be in the footwear and apparel sectors, will expand its production capacity in China and Vietnam.

In May, the Hong Kong-based company bought a 73 per cent stake in sportswear and casualwear maker Pro Kingtex Industrial Co Ltd as part of its move into the sports apparel business.

Yue Yuen's 254 production lines in Vietnam, China and Indonesia produced more than 130 million pairs of shoes last year which helped posted a record full year profit of $228.5m on revenue of $1.94 billion.

Executive director Steve Li said Tuesday: "We will continue to look for buying opportunities down the road, but the size of these purchases won't be as big as the one we had last year.

"Going forward, vertical integration and horizontal expansion will continue to be the key to the company's growth."