OneAll International Ltd (ASX:1AL) has commenced construction works to upgrade and expand its manufacturing facilities in Guangdong, China.
The company exports over 95% of its high-end own design manufactured (ODM) and original brand manufactured (OBM) outdoor furniture to 42 countries.
Changes in zoning have meant that OneAll has been able to extend its current operation to an additional seven-level 25,000 square metres fully integrated, manufacturing, warehousing, showroom and office facility.
The $8 million building construction contract was recently signed which includes the completion of the foundations for a second seven-level industry building - the next stage of the expansion program.
OneAll anticipates the first stage expansion to be completed in about nine months. Full commissioning of all operations will occur by September 2019, in time for the company’s peak manufacturing period.
OneAll managing director and chief executive officer Douts Li said: “Increasing our manufacturing and warehouse capacity is a very important initiative for OneAll, as it will assist us in growing sales organically.
“We are well placed to complete the build and full commissioning in time to capitalise on the peak selling period next year.
“As well, the showroom facility will help the company to build visibility for its product range in Guangdong-China, where the global medium-high end furniture trade shows are held several times in a year.
“OneAll continues to trade well in all of the markets in which it operates. Our core business is stable and we are also assessing a number of initiatives to broaden our e-commerce capabilities.”