LIMAHSOON Confident of Growth in Laminated Board Industry
Kuala Lumpur, May 26, 2004 - Bursa Malaysia-bound LIMAHSOON Berhad (LIMAHSOON) is a leading manufacturer of semi-finished timber products with its subsidiaries specialising in the manufacturing of laminated boards, finger-joint panels, furniture components, flooring strips and other rubberwood products. LIMAHSOON is optimistic of its growth in rubberwood products, an increasingly important source of material for the building and furniture industries.
The company's optimism is based on the strengthening economy as well as the potential of the laminated board industry.
"The economy is expected to strengthen over the next few years and this augurs well for LASB as it leads to potential business opportunities locally and abroad. Currently, our products are well received in Germany, Japan, India and Korea as we adhere to strict quality assurance processes and procedures which are at part with international standards," said Lim Chong Khim, Managing Director of LIMAHSOON Berhad.
Speaking at an Underwriting Agreement Ceremony held this morning with the Adviser and Managing Underwriter, Aseambankers Malaysia Berhad and Underwriter, Mayban Securities Sdn Bhd, Lim expressed confidence that LASB is set to strengthen its position as the market leader in the laminated board industry.
"In 2003, we utilised about 70 per cent of the manufacturing capacity at our factories in Beranang, Selangor, equivalent to an eight per cent market share. Today, we are in a better position to cater to the increasing demand from existing customers and at the same time, enable the company to expand our customer base."
"We also offer value-added services such as in-house sawmilling, pressure treatment, finger-jointing and kiln-drying which have established the company as the leading manufacturer of semi-finished timber products in the country," added Lim.
To date, LIMAHSOON has invested approximately RM30 million in its operations with a total staff strength of about 500 people. The company currently has a base of over 50 customers predominantly in Malaysia. The company also exports to Japan, Germany, India and Korea.
En route to its listing, LIMAHSOON is making a public issue of 16.4 million new ordinary shares at RM0.50 each. Upon listing, the issued and paid-up share capital of LIMAHSOON will increase from RM32.0 million to RM40.2 million comprising 80.4 million ordinary shares of RM0.50 each.
A portion of the gross proceeds of RM24.72 million arising from the rights issue and the public issue will be used for capital expenditure, repayment of bills payable and bank overdraft, working capital and listing expenses.
"Backed by a professional and dedicated team that emphasises on quality as well as a clear vision to tap into the international markets, we beliee that this listing will pave the way for LIMAHSOON to further capitalise on the potential of the laminated board industry," concluded Lim.
About LIMAHSOON Berhad
LIMAHSOON was incorporated in Malaysia on December 27, 2002, as a private limited company under the name of LIMAHSOON Sdn. Bhd. The company was subsequently converted into a public company and assumed its present name on May 8, 2003.
The company began as a sawmilling business
in 1987 and, since 1995, has focused exclusively on the
sawmilling of rubberwood and diversifed to other aspects
including pressure treatment, kiln-drying and manufacture
of laminated boards and mouldings. It currently holds the
leading market share position for laminated boards. At present,
its sawmilling activities are solely for internal manufacturing
requirements.
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