PICO Far East Holdings has acquired a production site in Dongguan, Guangdong, to meet increased demand for exhibition stands following the extension of the Hongkong Convention and Exhibition Centre. Financial Secretary Hamish Macleod, in his Budget for next year, proposed to spend $2.4 billion to build an extension to the centre in Wan Chai. After Pico's annual meeting yesterday, company chairman Henry Chia Song Seng said a letter of intent was signed last week with officials of Guanjingtou in Dongguan to buy a 10,000 sq m site. A factory will be built on the site to produce and assemble exhibition stands to cater for the expected increase in demand for trade shows in Hongkong and Shenzhen. Mr Chia believed the extension to the convention centre would be a boon to Pico and the industry as a whole. The new factory was expected to be operational in two years, said Mr Chia, who refused to divulge the cost of the site. He also said Pico was still negotiating with the owner of the Shenzhen International Exhibition Centre over the acquisition of the Shenzhen showpiece. The company, which was listed in September last year, reported a net profit of $26 million for the year ended October.