HO CHI MINH CITY, Vietnam — Samson Holding, the parent of Universal Furniture, Legacy Classic/Modern and Craftmaster, has postponed its plans to build a new manufacturing plant here because of declines in new orders and demand, particularly from the U.S. market.
In its 2021 annual report, the company said that it planned to build a new plant in Vietnam sometime during the 2022 calendar year.
However, the company has put the project on hold because of high costs during the pandemic, followed by current business conditions.
Mohamad Amini, president of company furniture manufacturing arm Lacquer Craft Manufacturing, said that the company still plans to build a plant in Vietnam. However, the timing will largely depend on a turnaround in the U.S.
In the meantime, the company will continue to use its current manufacturing facilities at its Timber Industries plant in the Dong Nai province of Vietnam. It purchased a majority stake in the 2 million-square-foot complex from Green River Group in the summer of 2019.
“Our current production capabilities will function well with the market demand in 2023,” the company said in its annual report published in late March.
In the same report, it noted that it has invested in automation and other technologies at its production and distribution facilities. This included the construction of an automated warehouse that the company said reduced the need for manpower while also helping manage its inventory.
“Inventory and cost control were the company’s top priorities in 2022,” Samson Holding said in its report. “Despite soaring freight costs, the group successfully adjusted procurement and inventory policies and managed production capability during the year to meet market demand while avoiding excess inventory. During 2022, the group also witnessed its continued effort to enhance manufacturing and delivery efficiency while improving cost controls. Samson kept investing in automation facilities and technologies to improve cost-reduction initiatives.”
For calendar year 2022, the company reported $598.9 million in revenues, up 22.7% over the $488.`1 million reported in 2021. It also reported a net profit of $15.1 million, compared to $27.2 million in 2021.