Sports shoe maker KTP Holdings will concentrate on its mainland operations before tapping the rest of the region, executive chairman Patrick Tang says. 'China is a lot more favourable as a production site in terms of transport costs, labour skills and sources of raw material,' Mr Tang said yesterday. The company's 70 per cent owned plant in Tangxia, Dongguan, in Gunagdong province, produces 500,000 pairs of shoe accessories a month, 30 per cent below capacity. Manufacture of the accessories should contribute to profit in the first year, Mr Tang said. The company planned to invest a further $1 million to expand production capacity at the plant. Mr Tang said the mainland faced no quota restraints on high-end shoes to the European Union and Vietnam's preferential tariff to the region would be reduced next year. KTP has reduced its dependence on Reebok from 70 per cent of the company's turnover to 55 per cent and has added two brands, Ellesse and Apex, to its production line. It makes 70 per cent of all DKNY shoes. Repayment of the last of a $117 million loan in 'a few months' would save $20 million in interest, Mr Tang said.