Plywood manufacturer Pacific Plywood Holdings will expand into Europe and Japan while shrinking its exposure to the mainland market in a bid to diversify risk, according to president and managing director Johnson Kao Wu-shiong. He said the target ratio for turnover this year would be 35 per cent in both Japan and China, 20 per cent in Europe with the remainder coming from the United States, Taiwan and Korea. Mr Kao said sales to the mainland had dropped 50 per cent compared with last year due to increased competition. Executive director Alexander Lau Kam-hung said the company had enough cash to clear about HK$6 million debt at the end of the year. Total debts are US$100 million. Mr Kao was in talks to delay until the end of the year exercising the option of buying an 80 per cent stake in a Jilin plywood factory.