Strength in Quality for LIMAHSOON
Malaysian Timber Bulletin, Newsletter of Malaysian
Timber Council - Vol.10 No.6/2004 ISSN 1394-6196
Looking upbeat and fresh from the successfully listing his company, LIMAHSOON Bhd on the second board of Malaysiaís stock exchange, Bursa Malaysia, Managing Director, Mr. Lim Chong Khim, talks to MTC on his immediate and long-term plans for the company.
After 17 years in operation, LIMAHSOON Bhd has attained the reputation as one of Malaysia's leading integrated manufacturers and distributors of rubberwood laminated boards. LIMAHSOON claims an 8% share in the local market for laminated boards which is estimated to be worth RM525 million in 2003 and consists of some 90 players, the majority of which is small. Most of the company's customers are furniture producers, including some of Malaysiaís biggest who export 100% of their production.
LIMAHSOON is principally an investment holding company, with a wholly-owned subsidiary, Kilang Papan Lim Ah Soon Sdn. Bhd. whose core business is laminated boards manufacturing. The boards are made from strips of solid wood glued together to form large pieces of solid boards. These boards usually come in 4' x 8' or cut to customers' specifications. Finger-joints and butt joints are the two common methods of joining. The laminated solid wood, which retains the natural beauty of the wood grain, the warmth of natural wood and the strength of solid timber, is primarily used for wooden furniture and interior fittings. The company also offers value-added services such as in-house sawmilling, pressure treatment and kiln drying services to its customers.
LIMAHSOON is managed by five Lim brothers, namely Chong Leng (Executive Chairman), Chong Khim (Managing Director), Teong Kwee, Tiong Chuan and Cheong Ngee (Executive Directors). The story of LIMAHSOONís roots can be traced back to 1987, when the Lim brothers set up a tropical wood sawmill, Guan Guan Timber Industries in Salak South, Selangor. Having been brought up in an environment of timber processing, owing to their father's (the late Mr. Lim Ah Soon) partnership in a sawmilling business, the Lim brothers had enough experience to venture out on their own. Their father would eventually join his sons at the sawmill, which produced tropical wood planks for export to Japan and Europe. The Lims' business was then converted to sawing rubberwood logs in 1995, but the business margins were small and profits elusive. And that was when the brothers' thought of making laminated boards came into the picture. To gain a competitive edge, they invested in superior German and Japanese machinery for their factory and integrated manufacturing process to ensure the best quality at the best price.
According to Mr. Lim, this objective still stands firm today. The company's success and business growth is based on the continuous emphasis on quality and backed by modern technology, intensive R&D and professional management. As an integrated manufacturer of laminated boards, LIMAHSOON maintains full control of the supply and quality of raw materials, the manufacturing processes and finished products. Most importantly, the company stresses on timely delivery, meeting customers' expectations, hence, earning their trust. The company, to date, has obtained international accreditations such as the ISO9001:2000, EN ISO9001:2000, BS EN ISO9001:2000 and MS ISO 9001:2000, which help garner the confidence in its products. LIMAHSOON's reputation as a manufacturer of high quality laminated boards is well known among furniture manufacturers in this country.
The company's facility in Beranang, Selangor is running at about 85% capacity, producing about 30,000 m2 of laminated boards annually. With a workforce of over 500, the two factories are equipped with advanced high-speed moulders customized to meet the requirements of its customers in the furniture industry, particularly in the production of skirting boards, door and window frames.
Mr. Lim pointed out that by sawing its own rubberwood logs, the company is able to ensure the high quality of the sawn timber produced. Coupled with continuous R&D on its manufacturing processes and investment on sophisticated machinery, this has given the company a competitive edge in attaining and sustaining the high product quality.
For the future, LIMAHSOON will focus on four areas; new products development, expansion of its production facilities, diversification into export markets and securing a long term and steady supply of rubberwood logs. Mr. Lim revealed that plans are afoot to venture into the manufacturing furniture components. "The company will embark on newly-improved and enhanced products like table tops, chair seats and backs, table and chair legs and beds. By producing furniture components, we will provide a larger range of products and at the same time, complement the manufacturing process of our customers," he elaborated.
Besides serving and supporting the local furniture industry, LIMAHSOON will be exporting to China and Denmark from 2005 while continuing to strengthen its footing in Germany, India, Japan and Korea. The company is expecting the overseas contribution to the groupís revenue to hit 10% by 2005.
LIMAHSOON also plans to maximise the usage of waste products such as wood cut-offs, slabs and tree barks from its sawmilling operations. The company has recently set up a wood chip production line which can produce about 100 tonnes of wood chips per day initially. The wood chips will be used for reconstituted or composite fibreboards such as MDF and particleboard, mainly for lower-end markets. "Rubber trees are a valuable resource and we are trying to utilize as much of the tree as possible," said Mr. Lim
The company was listed on the Bursa Malaysia on July 22, 2004. It has been a tough journey but as Mr. Lim succinctly puts it, "Like any other Malaysian companies, we have our share of difficult challenges and hard decisions. We are just lucky that some of those decisions paid off." Visualising the future, Mr. Lim is confident that LIMAHSOON would become a leading name for laminated boards in the region. "Backed by a professional and dedicated team and a clear vision, we believe that we are capable of further capitalising on the potential of the laminated board industry," he concluded.
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