SKB Shutters Corp Bhd has finalised the acquisition of 9.81 acres (3.97ha) of industrial land in Eco World Development Group Bhd’s Eco Business Park V (EBP V) for RM35.97 million.
SKB Shutters, which manufactures and supplies roller shutters, steel doors and storage rack systems in Malaysia, will set up its new manufacturing facility at the land in Puncak Alam, Selangor.
In a Bursa Malaysia announcement, SBK Shutters said the proposed acquisition is in line with the group’s long term corporate strategy of expanding its product range and continuous improvement in manufacturing capabilities.
“SKBSC Group intends to commission automated assembly line for its existing and new products in the pipeline. This is expected to contribute positively to its future earnings and thereby improve shareholders’ value over the medium to long term span,” it said.
SKB Shutters said the purchase price will be funded via a combination of internally-generated funds and bank borrowings from a bank or financial institution.
“The proportions will be determined later after taking into consideration SKB Shutters and its subsidiary companies (SKBSC Group) gearing level, interest costs, cash reserves and approved loan margin by financier(s),” it added.
At this juncture, SKB Shutters said, it is too preliminary to ascertain the exact product mix, total costs to develop the land, expected development timeline or estimated profits to be derived as it has yet to finalise the development plans for the land.
“Nevertheless, given the strategic location of the land and barring any unforeseen circumstances, the board is confident that the proposed acquisition represents an opportunity for SKBSC Group to strategically acquire the said land for expansion purpose and derive revenue that is expected to contribute positively to SKBSC Group’s future earnings. It would also allow SKBSC Group to potentially gain from capital appreciation of the said land in view of the positive outlook of the property market in Selangor,” it noted.
A signing ceremony was held earlier today, attended by SKB Shutters chairman Danny Sin and MD Michelle Sin, as well EcoWorld deputy president and deputy CEO Datuk Seri Sundarajoo Somu, and EcoWorld divisional GM Ho Kwee Hong.
In a separate statement, Michelle said the company chose to expand its business in EBP V for its progressive infrastructure and excellent portfolio of clients. “We are proud to position our manufacturing plant among other high-calibre establishments. With the cutting-edge facilities, extensive connectivity to major business ports and superior security, we are confident of the boundless possibilities that EBP V can offer,” she said.
With the new plant, SKB Shutters is forging ahead with its plans to deploy fully-automated fabrication lines, smart optimisation of energy and productivity monitoring and processes, and the launch of Fail-Safe Flood Gate production.
At EBP V, SKB Shutters aims to create an engaging workplace while continuing to ensure that its new plant prioritises green building operations including adapting rainwater harvesting and solar energy. Additionally, manufacturing and operation processes are focused on reducing waste and scraps with efficient production engineering and a dedicated waste water treatment component incorporated in this upcoming plant at EBP V.
Meanwhile, Sundarajoo said that the developer was pleased to welcome SKB Shutters to EBP V. “SKB Shutters’ decision to establish its business here will certainly contribute towards our efforts to make EBP V one of the best industrial parks in the country and a key job centre offering quality employment opportunities for the people of Selangor.”
EBP V is EcoWorld’s largest green business park with a total gross development value of RM2.85 billion. Spanning 700 acres with five phases, EBP V is developed by Paragon Pinnacle Sdn Bhd — a joint venture between EcoWorld and the Employees Provident Fund — and has an 85% occupancy.
At the close of market trading today, shares of SKB Shutters were down half a sen or 1.41% at 35 sen, giving it a market capitalisation of RM46.2 million. EcoWorld saw no change in its share price at 60.5 sen, giving it a market capitalisation of RM1.78 billion. — TMR