Business

Published: Friday June 15, 2012 MYT 3:28:00 PM

Maxwell to conclude acquisition of HK firm within this yr


KUALA LUMPUR: Sport shoes manufacturer, Maxwell International Holdings Bhd, expects to conclude the acquisition of a Hong Kong-based firm within this year.

Its executive director/chief executive officer, Xie Zhen'an, said both parties were still negotiating on the pricing. "We started the negotiation since last year. The deal will be funded by internal funds," he told a media briefing here on Friday.

He said the company, which he declined to name, would complement Maxwell's business. "The acquisition is also in line with the company's expansion strategies acquisitions, joint ventures or strategic alliances," he said.

On the recent land acquisition in Heinan, China, he said the province was chosen due to its large population of 100 million that would provide sustainability of the labour cost for the factory that would be built.

"Though the material cost there is slightly higher, this will be offsetted by the competitive cost of labour in the area," he said.

The new plant, which would have four production lines, would produce an additional capacity of eight million pairs of shoes compared to the existing eight million pairs currently.

He said the company also planned to increase its production designs by 50 per cent to 1,500 per year to strengthen its design and development capabilities and expand its product range.

Maxwell, which was listed on the Main Market of Bursa Malaysia on January last year, specialises in the design and manufacturing of sports shoes for domestic and overseas market via wholly-owned unit Zhenxing Shoes & Plastics Co Ltd. - Bernama

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