KUALA LUMPUR: Tashin Holdings Bhd, which was listed on the ACE Market on Thursday, will build a new factory and upgrade its steel processing line in Seberang Prai, Penang.
Tashin managing director Lim Choon Teik said the factory would have more steel processing lines and five new wire mesh production lines. The combined production capacity would be 50,000 tonnes per annum.
“We plan to utilise RM25.25mil from the initial public offering (IPO) proceeds to expand our business operations after listing” he added.
The new factory to produce wire mesh is expected to be completed by 2021.
Tashin’s current core activities are steel processing and manufacturing of steel products.
The decision to manufacture and trade in wire mesh will enable the company to have control over the supply of wire mesh.
Wire mesh manufacturing will enable it to diversify its manufacturing products and improve its profitability.
“We believe the addition of wire mesh in our manufactured product offerings will allow us to improve our profitability and strengthen our customer base, which in turn will enhance our competitive position. Our plans to make new products
will hinge on the market developments,” he added.
Lim was speaking to reporters after its listing on the ACE Market of Bursa Malaysia Securities Bhd.
Lim and Datuk Toh Yew Peng, the group managing director of Prestar Resources Bhd, officiated the listing ceremony by hitting the gong.