Pecca buys industrial land for new plant
12 Jan 2022
Pecca Group Bhd’s subsidiary Pecca Leather Sdn Bhd is buying a 1.74ha leasehold industrial land from UMW Development Sdn Bhd for RM8.45 million.
In an exchange filing today, the vehicle leather upholstery producer said it had entered into a sale and purchase agreement with UMW Development.
The land is in Serendah, Selangor, and is part of the mixed industrial, commercial and residential development known as UMW HVM Park.
It is a high-value industrial development park developed specifically for high-value manufacturing activities in industries such as healthcare and automotive.
Pecca said it would build a factory building in accordance with high-value designs and specifications required under the UMW HVM Park master plan.
Pecca said both parties would enter into a mutual covenants agreement to maintain the common facilities and services at the industrial park for theor mutual benefits.
Pecca managing director Datuk Teoh Hwa Cheng said the land was for a second manufacturing facility.
“This will enable Pecca to significantly increase its manufacturing and production capacity to cater for future orders.
“Ever since the industry-wide lockdowns have been lifted, the utilisation rate for our current manufacturing facility has seen an increase to nearly 100 per cent due to automobile manufacturers catching up with their backlog orders,” he said in a separate statement.
With a market capitalisation of about RM637 million, Pecca is involved in the styling, manufacturing and installation of leather upholstery for seat covers for the automotive and aviation industries.
It is the largest automotive leather upholstery player in Malaysia’s original equipment manufacturer (OEM) and pre-delivery inspection (PDI) passenger vehicle segments.
It serves export markets such as Singapore, the US, the Netherlands, Australia, New Zealand, UK, Ireland and China.
Pecca is also involved in the manufacturing of healthcare products.