SCANWOLF Corp Bhd is poised to become Malaysia’s largest and only luxury vinyl flooring manufacturer following the expansion of one additional pressing machine by end-2021.
Through its wholly-owned subsidiary, Scanwolf Flooring Industries Sdn Bhd (SFISB), the group specialises in the design, manufacturing and distribution of luxury vinyl flooring.
“The luxury vinyl tile (LVT) flooring market has experienced phenomenal growth due to its durability, affordable easiness to install and maintain,” commented Scanwolf’s executive director Ng Chee Wai.
“LVT is affordable in comparison to hardwood and yet providing the same luxury effect that wood has in any room in a home. Also, in comparison to wood, it is easier to install LVT, thus making it a perfect flooring option for contractors or homeowners with small budgets.”
In a report by Markets and Markets, the LVT flooring market is projected to grow from US$18 bil in 2019 to US$31.4 bil by 2024, thus recording a compound annual growth rate (CAGR) of 11.7%.
The high growth of the construction industry across regions is projected to drive market growth. In addition, factors such as the increasing residential and non-residential construction, re-modelling & maintenance activities, the high durability and enhanced aesthetic appearance of the LVTs are also projected to drive the demand for LVT flooring.
“To date, our production capacity is 1,100 boxes per day,” revealed Ng. “In view of the prospects of this business segment, the management wants to increase the production capacity by 30% to 1,460 boxes per day in the near future.”
In a circular, Scanwolf said it will add one unit of pressing equipment from the proceeds raised through its proposed rights issue of irredeemable convertible unsecured loan stocks (ICULS) with warrants. The exercise is expected to raise RM10.5 mil under the maximum scenario.
“The ongoing National COVID-19 Immunisation Programme has provided the much-needed optimism on the growth of the local property market this year. Based on the schedule, Malaysians should achieve herd immunity by the end of the year,” Ng pointed out.
“With that, Scanwolf is well-positioned to ride on the property market recovery. However, we strongly believe that when life is back to normalcy, the landscape of this 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.”
In support of building or designing environmentally responsible spaces, 90% of the raw materials of Scanwolf’s vinyl tiles are sourced from recycled materials.
Scanwolf is currently eyeing to expand its export markets which takes up less than 10% of its capacity. “We believe our company is one of the beneficiaries in the US-China trade war when buyers from US consumers and manufacturers are shifting to other countries to get the products they need,” reckoned Ng.
“Our expansion plan for this segment will not stop here. Our plant has the space to triple the production capacity from what we are producing now. So we are very positive that this segment will be contributing positively to the group in the coming years.” – July 5, 2021