KUALA LUMPUR: Scanwolf Corporation Bhd says it will become the largest luxury vinyl flooring manufacturer in Malaysia, following the expansion of one additional pressing machine by the end of this year.
Scanwolf executive director Ng Chee Wai said the luxury vinyl tile ("LVT") flooring market had experienced phenomenal growth due to its durability, affordable easiness to install and maintain.
"LVT is affordable in comparison to hardwood and yet providing the same luxury effect that wood has in any room in a home.
"In comparison to wood, it is easier to install LVT, making it a perfect flooring option for contractors or homeowners with small budget," Ng said in a statement today.
He said it was easy to see why luxury vinyl tiles were growing in popularity.
"They are a versatile and can fit in any room in a house. It is also perfect for institutions and busy offices."
In a report by Markets and Markets, the LVT flooring market is projected to grow from US$18.0 billion in 2019 to US$31.4 billion by 2024, recording a compounded annual growth rate of 11.7 per cent.
Scanwolf said the high growth of the construction industry across regions would drive market growth.
In addition, factors such as the increasing residential and non-residential construction, remodelling and maintenance activities, the high durability and enhanced aesthetic appearance of the LVTs are also expected to drive the demand for LVT flooring.
"To date, our production capacity is 1,100 boxes per day. In view of the prospects of this business segment, the management wants to increase the production capacity by 30 per cent to 1,460 boxes per day in the near future," Ng said.
In a circular, Scanwolf said it was going to add one unit of pressing machines from the proceeds raised through its proposed rights.
The exercise is expected to raise RM10.5 million under the maximum scenario.
Scanwolf believes that when life is back to normalcy, the landscape of the propety sector will change.
"LVT will be the alternative flooring option for developers, consumers, architects and interior designers to consider due to its traits of lower cost and easy to remove," Ng said.
Scanwolf is also eyeing to expand its export markets, which currently take up less than 10 per cent of its capacity.
"We believe our company is one of the beneficiaries in the US-China trade war when buyers from the US consumers and manufacturers are shifting to other countries to get the products they need," Ng said.