KUALA LUMPUR: Hup Seng Industries Bhd plans to expand its factory premises in Batu Pahat, Johor, by 57% by acquiring two adjacent parcels of land for RM17.49mil.
The biscuit and beverage maker told Bursa Malaysia that its biscuit manufacturing unit Hup Seng Perusahaan Makanan (M) Sdn Bhd bought a piece of 1.19-acre leasehold land with a three-storey factory building-cum-office as well as a 15,428.6-sq m freehold land with five building units.
“The group’s existing facilities are congested and the current capacity may not be able to cope with expected increased demand in year 2017 and beyond,” the company said.
“The proposed acquisitions will enable the group to rationalise and modernise its production lines with the addition of new lines and corresponding support facilities and improve the layout of its packaging areas for efficient production processes.”
Currently, all of the group’s production lines are housed in a factory which sits on a 60-year leasehold land with a total land area of 20,234 sq m, expiring on May 24, 2040, with a remaining lease of about 25 years.
The freehold industrial land would help to ensure operational continuity for the group, Hup Seng said.
A portion of that land measuring 37.16 sq m has been leased to Tenaga Nasional Bhd for 30 years ending Dec 9, 2031.
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