Coraza acquires factories for RM17.69mil to boost manufacturing capabilities

KUALA LUMPUR: Coraza Integrated Technology Bhd's wholly-owned subsidiary Coraza Systems Malaysia Sdn Bhd is acquiring a 8,538sqm parcel of freehold industrial land with offices and factories in Nibong Tebal, Pulau Pinang, from Huhtamaki Foodservice Malaysia Sdn Bhd for RM17.69mil.

In a filing with Bursa Malaysia, Coraza said the purchase price of the acquisition will be funded by a combination of internally generated funds and bank borrowings.

The group said the property is located opposite its existing Nibong Tebal plant and will immediately increase its manufacturing capabilities while the construction of a new factory adjacent to the current plant is underway.

The construction is scheduled to begin in the third quarter of 2023 and is estimated to be completed by the third quarter of 2024.

"By acquiring this strategically located property, Coraza Group can eliminate the necessity of leasing additional plants for new facilities, effectively mitigating potential leasing risks and avoiding sunk costs.

"Moreover, this acquisition ensures greater control over operations, better workforce support, improved logistics arrangements, leading to long-term cost savings, and streamlining the overall operations of the company," it said.