PETALING JAYA: NWP Holdings Bhd has moved past the legal tussles involving its board of directors, as legal suits were dropped following the reshuffling of its boardroom members.
The group has appointed its largest shareholders, Datuk Tan Lik Houe, as non-independent and non-executive director while his daughter, Tan Jyy Yeen, was made the executive director. Datuk Yeo Chai Poh was also named as an independent and non-executive director.
Lik Houe said the board is looking forward to drive recovery for the group after settling the legal issues within the group.
“On March 28, on the advice of our legal team, Originating Summons No. WA-24NCC-55-01/2022 has been withdrawn. We are glad that we will turn over a new page,” he said in a statement.
With the internal issues resolved, NWP will tap into the surge in demand for its timber manufacturing business amidst the reopening of international borders and the economy.
Lik Houe pointed out that demand for furniture has surged over the last one year and an increase in timber prices will also benefit NWP, allowing the group to record a turnaround for its upcoming financial year.
“We remain focused on our existing core business, which is the timber manufacturing business. Since the reopening of the economy, we have seen an increase in orders for our business, led by the surge in demand for furniture.”
He explained that this is partly due to the return to the workplace as the economy reopens.
In addition, timber prices have also increased by 20% as compared to the average selling price in 2021, which benefits the group.
“We are optimistic that both the strong demand and pricing will drive the turnaround for NWP in the upcoming financial year,” said the non-executive director.
He elaborated that the orders from China are particularly strong and would provide the foundation for its growth over the next three to five years as the group’s expansion strategy takes off.
Previously, the pandemic and the ensuing movement control order had a severe impact on its manufacturing capacity, which had also been partly affected by the supply chain disruption and logistic bottlenecks.
With the reopening of the economy, NWP is looking to ramp up its manufacturing capacity from its current level of around 20% to 80% by the end of this year.
“The focus on the timber manufacturing business will rejuvenate the group and drive the turnaround of our financial performance in the upcoming financial year as we ramp up our manufacturing capacity to 80% from the current level of 20%,” said Lik Houe.
The group is optimistic of a strong turnaround in the post-Covid world.