IHL projects revenue rush on new plant

IHL projects revenue rush on new plant

SET-listed Interhides Plc (IHL) is aiming for double-digit growth in sales revenue this year and in 2018, with its new factory due to be ready this year.

The country's leading manufacturer and distributor of leather for car seats estimates its sales revenue will increase to 2.2 billion baht this year from 1.8 billion in 2016, and surge to 3-3.5 billion in 2018, said managing director Ongart Thumrongsakunvong.

Interhides' daily production capacity will be raised to 220 tonnes from 90 tonnes at present after its new plant is completed at the end of this year.

Given that the new 900-million-baht factory has already won the World Leather Factory award, it is also expected to entice the world's leather brand leaders, especially from Italy and France, to order leather from the company, he said.

"Winning the award shows that our factory is world-class. We are sure it will give a boost to the company's [financial] performance. The award not only assures quality but also increases buyer confidence that the leather will be produced in an environmentally friendly manner," said Mr Ongart. The award led to orders for leather supply from many producers.

The company recently inked a deal with Global Leather Intelligence HK Ltd to provide hide processing services for 1 million pieces annually to the Hong Kong-based company in a deal valued at 700 million baht a year. The contract has a two-year period with automatic renewal at the end of the term.

The contract will propel the company's service revenue this year, while the leather for car seats business remains its core revenue contributor, said Mr Ongart.

IHL shares closed Friday on the SET at 7.05 baht, down five satang, in trade worth 17.4 million baht.

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