Benzinga | Jun 21, 2021 09:32AM EDT

ZK International Says Looks To Supply International Markets That Face Shortages In Construction Materials

ZK International Group Co., Ltd. (NASDAQ:ZKIN) ("ZKIN", "ZK International" or the "Company"), is pleased to announce that the Company plans to expand its sales network and operations into Europe and North America. The worldwide increases in price and shortage of supply, has created an opportunity for ZK. As a result, ZK has already seen an increasing demand for its products and the Company's business has returned to growth that is on schedule to surpass pre-pandemic levels. The Company is currently reviewing the potential of expanding its business outside of China and expects to be able to lay out those plans shortly.

As the pandemic evolves, it is disrupting the global supply chain of construction materials, and the shortages of construction materials in the US are now more widespread than at any time since National Association of Home Builders (NAHB) began tracking the issue on a regular basis in the 1990s in its survey for the NAHB/Wells Fargo Housing Market Index (HMI) and Europe is falling into the same situation as the US. ZK's core business is to engineer and manufacture patented high-performance stainless steel and carbon steel pipe products for the water and the oil & gas industry. The shortages of piping fixtures across Europe and North America are creating an opportunity for ZK to take its international sales to a new level.

Mr. Jiancong Huang, Chairman and CEO of ZK International, stated, "Due to the pandemic, we see a big gap between the supply and demand which creates a great opportunity for ZK to expand its international base. ZK currently exports its products to 14 countries in Europe and has no export sales in US at this point. The Company currently works with more than 60 partners across the world and has more than USD $6 million in revenues generated outside of China. We are committed to continuing to expand our sales forces in Europe and we plan to engage in the US market as well."

Shortage of Construction Materials in Europe

ZK is looking to supply its products to distributors in the UK as builders continue to face material shortages, delays, and disruptions as the construction boom continues to drive demand. This is not only evident in the UK, but across Europe as demand for construction material continues to increase. For more details: https://www.pbctoday.co.uk/news/planning-construction-news/building-materials-shortage/94515/

Shortage of Construction Materials in US

According to NAHB, shortages of materials are now more widespread than at any time since NAHB began tracking the issue on a regular basis in the 1990s in its survey for the NAHB/Wells Fargo Housing Market Index (HMI). In response to special questions on the May 2021 HMI survey, over 90 percent of builders who buy the product in question reported shortages of appliances, framing lumber and OSB. 75 percent said there was a shortage of plumbing fixtures and fittings.

To further illustrate how drastically the situation has changed since last year, the table below compares results from the last two HMI surveys on building materials. The share of builders reporting a shortage of plumbing fixtures and fittings skyrocketed by 54 points, from 21 to 75 percent.

Source: https://www.pbctoday.co.uk/news/planning-construction-news/building-materials-shortage/94515/