Nov 16 2010
Asia Cork Inc. (OTCBB:AKRK) had signed a strategic agreement with Ferma Wood Flooring recently for its exploitation of North American market. According to the agreement, Asia Cork and Ferma agreed to establish a new joint venture under the name of “Elegant Cork” in New Jersey.
The main purpose of this new company is to sell cork products manufactured by Asia Cork, which will borne the brand name of “Elegant Cork” or “Green Cork” while utilizing the existing distribution channel resources of Ferma Wood Flooring. Asia Cork shall start building up an inventory in the U.S. which shall include above 10 types of cork products and each type not less than 30,000-50,000 SQFT in quantity in first half of 2011. Upon estimation, the total annual sales of Elegant Cork shall be around 3 to 5 million dollars.
Mr. Chen Peng Cheng, the CEO of Asia Cork said, “We have long planned to enter into North American and other developed countries’ market to further utilize our cost advantage. This agreement with Ferma Wood Flooring provides us with a good chance to start the plan with. We are also optimistic with the U.S. market demand, given the competitive high quality and lower prices of our products compared to other similar products in the market.”
Mr. Sam Lu, the president of Ferma Wood Flooring said, “Cork decoration materials can be a very good functional decoration product for the U.S. market as it has many features that hardwood or bamboo floorings can not achieve. It can be the best choice for the basement and storeroom, which most of the U.S. families have in their houses, for its outstanding anti-mould feature. We are confident to sell several hundred thousand SQFT of these cork products every year, and we suppose the total sales shall be moving up quickly if there can be sufficient and steady supply.”
Source: http://www.hxrm.com/