Ta Win breaks ground on new factory in Port Klang
08 Nov 2021
Copper product manufacturer Ta Win Holdings Bhd’s wholly owned subsidiary Ta Win Innotech Sdn Bhd has entered into a conditional sale and purchase agreement with BRB Properties Sdn Bhd for the acquisition of leasehold industrial land in West Port, Port Klang together with factory buildings on the land for RM35 million.
With a land area totalling four acres and a total build-up area of 150,000 sq ft, the proposed acquisition will enable Ta Win to triple its total production capacity over the medium to long-term, catering for the expected long-term demand growth for copper rods and wires. The land is also strategically located close to the port, allowing for greater logistical efficiencies and cost optimisation.
Ta Win group managing director Datuk Seri Ngu Tieng Ung said Ta Win plans to set up three electron beam irradiation plants in Malaysia within the next three years to supply irradiated cross-linked wire and cable products utilising the patented electron beam cross-linked technology, with the first plant to be built in its existing manufacturing facility in Malacca.
“We have decided to relocate the manufacturing of our copper rods and wires business from our existing premises to the newly acquired land and factory in Port Klang. This will allow us to fully utilise the capacity of our Malacca facilities for the expansion of the signal and power solution business, entailing manufacturing of power and signal distribution systems, high tension cable, battery cable, and other automotive components and parts for automobile and electric vehicles,“ he said in a statement.
The land acquisition follows Ta Win’s recent signing of an exclusive supply contract with Posco International Corp in South Korea, which will see the group exclusively supplying 65,000 metric tons of copper products to South Korean-based copper foil manufacturers including their overseas production plants.
Ta Win expects to generate an aggregated revenue of RM2.6 billion based on the LME copper price of US$9,440 per metric ton.
“Given the exclusive supply contract with Posco International, the proposed acquisition in Port Klang will enable us to progressively triple our production capacity. This equips us with the ability to cater to potential increasing orders from Posco International, existing and new clients as well as our expansion downstream into electron beam cross-linked wire and cable products,“ he said.
Source: The Sun Daily