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Pegasus to step up shoe production

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Sports and casual shoes maker Pegasus International plans to invest US$15 million of its own funds in the next 12 months to bolster production capacity by about 20 per cent, encouraged by the recovering international shoe market.

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Chairman Thomas Wu Chen-san said the decision was based mainly on a reduction in inventory and stronger demand in the European and North American markets.

Mr Wu unveiled the plan after announcing a 20.1 per cent year-on-year net profit growth to $10.55 million in the first half this year. Turnover grew 10.7 per cent to $89.78 million from a year ago.

Nike, the company's largest customer, accounted for about 44 per cent of total turnover.

The company is to spend $3 million this year on ordering, procurement and accounting automation.

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Mr Wu said it will decide next week whether to set up an assembly operation in the SAR after assessing order demand from Europe.

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