PACIFIC Plywood Holdings, a plywood and veneer maker and exporter, will be the first company of its kind on the stock exchange when it makes its debut on November 20. Chairman Budiono Widodo said the company, whose principal operations were in Malaysia, decided to list in Hong Kong rather than Kuala Lumpur to reflect its desire to expand in China. It had signed a deal with an 'independent state-owned entity', China Complete Set Equipment Import and Export Dalian Co, to set up a factory in the northeastern city of Dalian, he said. Of the HK$235 million to be raised by its new issue and placing, HK$95 million would be spent to build the Dalian factory and buy machinery to manufacture value-added plywood products. A further HK$134 million would fund expanded production in Sarawak and Singapore. Mr Widodo said the company would commit US$20 million in cash and machinery to the mainland venture in the second half of next year. The Chinese plant would begin operations in October, making mouldings, wooden posts and laminated boards, with an annual capacity of about 102,000 cubic metres for export. Mr Widodo said preparation work for the joint venture was under way. Shares offered under the issue and placing represent 25 per cent of the company's enlarged issued capital. The company is forecasting to improve on last year's net profit of HK$125.5 million in the current year.