Samson wants to reduce its exposure to China
Samson Holding, parent to UK furniture supplier Willis & Gambier and scores of U.S furniture wholesale brands, says it is working "aggressively" to reduce its exposure to production in China.


The Hong Kong listed conglomerate said in order to improve margins, it was working with outsourcing partners in Asia to further reduce concentration exposures for manufacturing of case goods furniture in the country.

"Our investment in Bangladesh has started to blossom and we are planning to expand capacity in Bangladesh for dining tables and chairs," the company added in a filing alongside its interim results.

Samson last year disposed of a manufacturing plant in Dongguan, China, helping it to lower some of its administrative expenses.

Its comments come amid a background of incoming tariffs from the U.S and heavy-handed state oversight of Chinese furniture makers' approach to the environment.

Samson blamed rising raw material and labour costs for a 220 basis point narrowing in gross margin to 32.4 percent in the first half of 2018, though it also cited the "rigid environment requirement" in China, a reference to the country's recent crackdown on factories that don't meet emissions targets.

Half-year revenue declined 2.8 percent to $227.9 million for Samson in the six months to end June, with profits down 43 percent to $7.7 million.

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