EFB sees demand picking up after six months
PULAI : Evergreen Fibreboard Berhad (EFB) says demand for its medium density fireboard (MDF) has improved afater it declined in the six months to March 31.
Chief operating officer Kuo Jen Chiu said demand picked up in April and May ans was likely to continue as the global economy was on the road to recovery.
" The decline was due to the US and Europe where consumer confidence was low," he told StarBiz after the company AGM on tuesday.
Kuo said the company exported 70% of its products. Recent demand came mainly from the Gulf Cooperation Council countries, comprising the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman, and also Indonesia, India, Pakistan adn Vietnam , he said.
Kuo added that many of the construction projects in these countries were halted temporarily when the financial crisis broke out in the third quarter of 2008.
He said apart from the construction-related industry, demand for MDF also came from furniture manufacturers as 50% of its products were used for furniture making.
Kuo Said regular furniture exhibitions held in several countries in the region in the second quarter of this year also boosted orders.
The company was ranked fifth in the Leading Global MDF Producers Groups 2008 ( MDF Year Book ) with a combined annual production capacity of 1.06 million cu m.
Presently, EFB has manufacturing facilities in Malaysia, Indonesia adn Thailand, and also a glue plant in Batu Pahat producing 65,000 tonnes of glue yearly for use at its fibreboard and particleboard plants in the country.
For the financial year ended Dec 31 ( FY08), it recorded net profit of RM63.86mil on revenue of RM730.52mil against RM131.34mil and RM731.57mil respectively in FY07.