PETALING JAYA: VS Industry Bhd has entered into sale and purchase and construction agreements with Ipark Development Sdn Bhd to acquire six pieces of land with industrial buildings for a total consideration of RM98.77 million.
Ipark Development is a 80% owned subsidiary of AME Integrated Sdn Bhd, which in turn is 99.9% owned by AME Elite Consortium Bhd.
According to the group’s Bursa disclosure, the land is located in Tebrau, Johor, with a single story detached factory with two story office block as well as a single to three story industrial building with two storey office block.
It elaborated that the acquisition will increase its production capacity for future expansion including capturing opportunities from the US-China trade tension as well as to continue growth as its current manufacturing capacity are already fully utilised.
VS also revealed that it will relocate its headquarters to the properties which will free up space at its existing manufacturing facilities to capture rising orders from existing customers.
The group stated that the purchase will be funded via internally generated funds and bank borrowings.
The acquisition is expected to be completed by June 30, 2021.
In a separate statement, AME Elite said post-completion, these additional facilities would increase the EMS’ player’s production land area by almost 25% to 50 acres in Malaysia.
Group managing director Kelvin Lee Chai said the domestic direct investment within its i-Park industrial park from a world-renowned EMS player is a vote of confidence for the group’s top-notch facilities that are able to support their high-capacity requirements.
“Moreover, our encompassing ‘design-and-build’ capabilities allow us to customise to their exacting requirements and complete the delivery within a relatively short period.
“It has always been our vision to partner with growth-centric players, be it from Foreign Direct Investment or DDI, and we are pleased to support the expansion of another EMS player into i-Park@Senai Airport City,” he said.