Malaysia’s DK Leather Corp. is forecasting a very promising future following an increase in the company’s export market, with revenues likely to increase two-fold in Europe, the USA, the Caribbean, and Canada in the fiscal year to March 2005.
The company’s subsidiary DK Leather Seats (DKLS) has agreed a supply distribution agreement with Katzkin Leather Inc, so that Katzkin will become the sole distributor for DK Corp.’s automotive leather upholstery in the USA, Canada and the Caribbean. Katzkin will not only distribute DK’s products, but will also work on the design and quality of the products, thus enhancing DK’s share in these markets.
Europe is also cited as a booming area for DK’s export business, with the company predicting 20% of sales in Europe by March 2005, compared with 5% of sales in the current year.
The company has established a presence in new markets such as the Benelux countries of Holland and Belgium, and also in Italy and Spain. This expansion has been credited to the establishment of a warehouse in Holland which has allowed the company to distribute products throughout Europe, without using agents. As a result of this expansion, the company’s exports now account for 52% of total revenues.
DK Leather Corp. is also planning two new plants in Asia - one in Thailand and the other in Indonesia.
