Pecca buys industrial land for RM8.45mil to expand automotive business

Pecca Group Managing Director Datuk Teoh Hwa Cheng

KUALA LUMPUR: Pecca Group Bhd’s wholly-owned subsidiary Pecca Leather Sdn Bhd (PLSB) has entered into a sale and purchase agreement (SPA) with UMW Development Sdn Bhd in respect of the purchase of a vacant leasehold industrial land measuring 4.31 acres at a purchase consideration of RM8.45mil.

Pecca, in a filing with Bursa Malaysia said the land, located at Serendah, Selangor was part of the mixed industrial, commercial and residential development known as UMW HVM Park.

Pecca said that the construction of the factory building will be in accordance with high-value designs and specifications in conformity with the requirements under the UMW HVM Park Master Plan.

Thereafter, both parties will enter into a mutual covenants agreement to maintain the common facilities and services at the industrial park for the parties’ mutual benefits.

Pecca managing director Datuk Teoh Hwa Cheng said the acquisition was proposed to build and construct a second manufacturing facility for the company’s operations.

“This will enable Pecca to significantly increase its manufacturing and production capacity to cater for future orders.

“Ever since the industry-wide lockdowns have been lifted, the utilisation rate for our current manufacturing facility has seen an increase to nearly 100% due to automobile manufacturers catching up with their backlog orders,” he said.

“Besides fulfilling the need to expand our production capacity, the acquisition of this land in the high-value manufacturing park is also in line with Pecca’s strategy to enhance its operational efficiency by integrating the latest in Industry 4.0 enabled innovations and advanced manufacturing infrastructure.

“This will better prepare and fully equip us to meet all the requirements of any new customers,” Teoh said.