MOULD-BASE maker Lung Kee Metal is expanding its production facilities in Dongguan, Guangdong, to meet rising demand for its products and increase its penetration of the emerging market in China. Managing director Siu Tit-lung said his group was planning to build a total of 160,000 square feet of production space in three phases on a 53-acre site. The first phase involved building a 32,000 sq ft factory, which went into operation last year, and the second factory, with floor area of 56,000 sq ft, would be operational in April, he said. He estimated that about $15 million had been spent on the expansion. Mr Siu said Lung Kee was also negotiating with a Chinese partner to set up a joint venture to produce mould bases at its Dongguan plant. He said such a venture would give Lung Kee the right to sell its products directly in China, where he expected tremendous growth potential. Mr Siu said demand for mould bases would increase rapidly in China as consumption of plastic materials and related products increased. He said average consumption of plastic materials in China was about two kilograms per person a year, compared with the worldwide average of about 100 kg a person a year. Lung Kee, which was founded in 1975 by Mr Siu and his younger brother Alan, is understood to be seeking a public listing to raise funds for expansion. Mr Siu said the company was setting up a production line in Singapore with about 4,000 sq ft of production space, which was due to be operational in April, to make mould bases. For the year ended March 31, 1992, turnover was about $130 million, with a profit margin of about 16 per cent.