SIU-FUNG Ceramics Holdings has branched out into wholesaling ceramics products in China and announced a co-operation agreement with the Laufen Group of Switzerland.
Siu-Fung will act as Laufen's sole agent in the mainland, from its newly established wholesale centres in 13 main cities, including Beijing, Shanghai, Tianjin, Shenzhen, Guangzhou, Wuhan, Shantou and Dalian.
Vice-chairman Peter Lee said the investment would be minimal as the company would make use of its existing offices for distribution. He said the wholesale centres had also secured approval to import and export.
Laufen, in turn, will sell Siu-Fung's sanitary ware, table-ware and ceramics tiles in the international market.
Mr Lee said the alliance marked a big step in the development of the company.
He said the link up with Laufen would provide Siu-Fung's wholesale network with a broader range of products, with Laufen's products tapping the upper range of the market.
Laufen has also undertaken to buy between 400,000 and one million square metres of ceramics tiles annually from Siu-Fung for distribution in the international market. This will account for 10 per cent of the Hong Kong company's existing production capacity.