Mountville, Pa.—AHF Products said it will be ceasing manufacturing in Shanghai, China and will service all international customers out of its Sihanoukville, Cambodia plant.
The Shanghai plant, which was acquired as part of the LM Flooring business acquisition, produced engineered flooring products for the Canadian, European, Asian and Australian markets. Its U.S. customers will continue to be serviced from AHF’s state-of-the-art Cambodia plant.
“After a strategic review of the business, we made the difficult decision to close our Shanghai plant,” said Brian Carson, president and CEO. “Decisions that impact the lives of our employees are never easy, and I’d personally like to thank the Shanghai team for its contributions to the business and our customers. We will work closely with them to support them throughout this transition, and several key leaders will be transferring to our Cambodia plant, further strengthening the team there.”
Over the last 12 months, AHF said it has tripled its capacity in Cambodia with plans underway to double again through Q1 2021. The company continues to expand its pressing, milling and finishing capabilities along with new dormitories in July to support the expanded workforce.
The Shanghai plant employed 175 employees, and in addition to transferring some key personnel to Cambodia, cutting edge equipment from the Shanghai location will be relocated as well.
“At AHF, we continued to invest in and expand Cambodia in the first half of 2020, and we’re excited to expand our world-class offerings of tariff-free and duty-free wood flooring products to our customers around the world,” Carson added. “Our customers’ response to our new products out of Cambodia has been phenomenal, and we welcome aboard the additional personnel and expertise that will transition from China to Cambodia.”