The move is aimed at capitalizing on China’s Belt and Road Initiative and at globalizing business HONG KONG, CHINA – Media OutReach – 10...

The move is aimed at capitalizing on China’s Belt and Road Initiative and at globalizing business

HONG KONG, CHINA – Media OutReach 10 September 2019 – China Lesso Group Holdings Limited (“China Lesso” or the “Group”,
HKEx stock code: 2128), a leading large-scale industrial group making building
materials and interior decoration products in mainland China, is pleased to
announce its plan for overseas expansion. The Group invests US$60 million in a
large-scale pipeline production base in Indonesia to increase its competitiveness
and business presence in Southeast Asia. The move represents the Group’s effort
to capitalize on China’s Belt and Road Initiative and to step up the
globalization of its business.

The Group is constructing its own production
base in Indonesia which will be equipped with a number of advanced, automated
production lines for pipelines and pipe fittings. The plan will be carried out in
two phases. The first phase of the project will have designed annual production
capacity of approximately 60,000 tons and will supply its products to Indonesia
and its neighbouring countries in Southeast Asia and other countries in North
America in the next five years. The entire production base is estimated to have
annual production capacity of 100,000 tons.

Before the completion of its own production base, the Group rents a
local factory in Indonesia to produce plastic pipes and fittings on a small scale
with an annual output of about 4,000 tons, starting from November this year.

Mr. Wong Luen Hei, Chairman and Executive Director of the Group, said, “As the largest economy in Southeast
Asia with a population of nearly 300 million, Indonesia is one of the main
drivers of economic growth in the region. It is also a major Southeast Asian
country that participates in China’s Belt and Road Initiative. Indonesia is a
market with huge potential. Therefore, we are building a large-scale pipeline
production base in the country with the aim of tapping its huge domestic demand
and grasping the opportunities presented by its infrastructure development. This
is
an important strategic move in
China Lesso’s plan for globalizing its business. In the future, the Group will
continue to proactively develop its business in other Asian countries,
including India, Vietnam and Thailand. This will add impetus to the Group’s
overseas expansion.”

About China Lesso Group Holdings Limited

China Lesso Group Holdings Limited is a
leading large-scale industrial group, making building materials and interior
decoration products in mainland China. It is listed on the main board of The
Stock Exchange of Hong Kong Limited (stock name: China Lesso, stock code:
2128). China Lesso is one of the constituent stocks of the Hang Seng Composite
Index — MidCap and
is covered by Hong Kong Stock
Exchange’s Stock Connect.

The Group provides over 10,000 kinds of
quality products, including plastic piping systems, sanitary ware products,
integrated kitchens, systems of doors and windows, decorative plates,
fire-fighting equipment, and sanitary materials, etc. They are widely applied
to such fields as interior decoration, water supply, drainage, power supply and
telecommunications, gas transmission, agriculture, floor heating and fire
services. The Group is positioned as one of the manufacturers who offer the
most comprehensive range of building materials and interior decoration
products.

The Group has 23 advanced production bases in
16 regions, namely Guangdong, Guizhou, Sichuan, Hubei, Jiangsu, Anhui,
Zhejiang, Henan, Hebei, Jilin, Shaanxi, Xinjiang, Hainan, Yunnan, Shandong and
Hunan. The Group has established a nationwide sales network and has also
developed long-term strategic partnerships with 2,206 independent and exclusive
first-tier distributors to provide quality and comprehensive products as well
as professional services for customers.

Source:: Media Outreach

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