Stock News: Honguo boost shoe production capacity!

Hongguo to boost shoe production capacity by 50 pct China-based Hongguo International Holdings Ltd said it will invest 18 mln yuan to boost its production capacity for women's shoes by 50 pct to 3.90 mln pairs annually by June 2007. The additional capacity will help the company meet growing demand for both its in-house ladies' footwear labels C.Banner and E.Blan, as well as orders from other shoemakers. Apart from expanding its production capacity, Hongguo is also investing 8 mln yuan to develop a new design and logistics center in Guangzhou. When completed by end-2006, the company's design capability will increase from 1,000 to 4,000 models a year, it said. Separately, Hongguo said its wholly owned subsidiary Mayflower (Nanjing) Enterprise Ltd has signed a memorandum of understanding with San-Diego based KIA Group Inc, a US-based designer and manufacturer of fashion footwear Naughty Monkey. Under the MOU, Mayflower Nanjing will receive exclusive distribution rights for Naughty Monkey footwear in China for the next five years.