Leather sofa maker announces production expansion plans
Singaporean leather furniture maker, HTL International Holdings, has posted a 52% jump in first quarter profits.
For the three months ended March 31, net profits totalled $7.7 million on the back of a 13% rise in turnover, to $100.5 million, with the company’s sofa business accounting for $79.3 million of the total, a 27% improvement on the year before. However, revenues from the leather business slipped 4% to $58.9 million, while the company’s cut-and-sew operations earned $3.3 million, a 1.4% rise on the year before.
In announcing the results managing director, Mr Phua Yong Tat revealed plans for a new factory in Kunshan, China. Capable of producing 350 containers worth of leather sofas per month, it is expected to be operational by the end of July. HTL has two existing upholstery factories in China, in Kunshan and Changshu, and two tanneries in Yangzhou and Kunshan. Following the favourable reception given to its sofas in France, the company was also looking to reinforce its European presence, Mr Phua said.
