FoundPac buys land in Penang to boost production capacity
02 Dec 2022
PRECISION engineering parts maker FoundPac Group Bhd is buying two adjoining plots of industrial land in Penang for RM25.5 million to increase its production capacity.
In a bourse filing today, FoundPac said its wholly owned unit, FoundPac Technologies Sdn Bhd, entered into a sale and purchase agreement with Zoomic Technology (M) Sdn Bhd, a unit of Iqzan Holding Bhd, to purchase the industrial lands measuring 8,365 sq m in the Bayan Lepas Free Industrial Zone in Penang, with a double-storey detached factory-cum-office building thereon.
“The purpose of the acquisition is to enable FoundPac Technologies to increase its production capacity,” the group said.
FoundPac said that the land will be used as FoundPac Technologies’ new manufacturing facility, as it is less than a kilometre away from the unit’s existing manufacturing facilities and therefore represents an opportunity to contribute positively to FoundPac Technologies’ earnings in the medium to long term.
It added that the purchase consideration will be financed via internally generated funds.
Barring unforeseen circumstances, as well as the requisite approvals, FoundPac said the group expects to complete the acquisition by June 30, 2023.
Shares in FoundPac closed 1.5 sen or 2.73% lower at 53.5 sen today, giving the group a market capitalisation of RM289.15 million.
Source: The Malaysian Reserve