KTMG resumes trading on Catalist as vertically integrated apparel maker

Singapore

APPAREL contract manufacturer KTMG, formerly Lereno Bio-Chem, may well stand to gain from the ongoing China-US trade war.

The company has received more enquiries from United States retailers looking to shift their manufacturing output from China as the trade row between the world's two largest economies plays out.

KTMG is a Malaysia-based firm with over 30 years of industry experience. It currently specialises in nightwear, lounge wear, casual wear and plus-sized apparel for various ages.

Chief executive officer Lim Vhe Kai told The Business Times that the company is well-positioned to take advantage of the situation as it has a total of 35 production lines at three factories - one in Malaysia and two in Cambodia.

The 43-year-old spoke to BT on Monday when KTMG resumed trading on the Singapore Exchange Catalist board after trading was suspended on Feb 18 for a series of corporate activities including name change, appointment of top executives, including Mr Lim and his father Lim Siau Hing as executive chairman, and completion of reverse takeover of Knit Textile and Apparel from the senior Mr Lim.

Lereno Bio-Chem entered into an agreement in September 2017 with the senior Mr Lim to acquire all issued ordinary shares of Knit Textile and Apparel for about S$26.4 million.

KTMG's new helmsman, who has more than 16 years of experience in the apparel manufacturing sector, on Monday also shared the company's plan of going upstream into knitting, dyeing, finishing and printing of fabrics with an investment of RM32 million (S$10.5 million).

Mr Lim said: "This listing marks the start of an exciting phase in KTMG's growth. We believe that our upstream expansion, along with our co-creation business model and strong experience in apparel manufacturing, will position KTMG positively in the global market place."

The co-creation model involves KTMG working with its customers from initiation, conceptualisation and designing to manufacturing.

It will set up its own research and development team as well to develop new techniques and processes for knitting, dyeing and post-processing treatment, formulation and improvement of dye mixtures, as well as new value-added functionalities for fabrics.

Further, KTMG intends to diversify its key markets from the US and the European Union to the southern hemisphere. It is in talks with prospective customers from Australia. Mr Lim declined to go into details.

But a slowdown in the global economy could hamper KTMG's business, Mr Lim said.

KTMG, with a market capitalisation of about S$33.9 million, had four million shares change hands on Monday within 30 minutes after trading resumed in the afternoon. The counter was flat at 40 Singapore cents.