Paper packaging firm Ornapaper to diversify into property development


PETALING JAYA: Ornapaper Bhd is proposing to diversify its existing businesses to include property development and property investment.

In a filing with Bursa Malaysia, the company said it is currently involved in the manufacturing of corrugated boards and carton boxes (paper packaging), paper-based stationery products as well as the provision of logistics services in Malaysia.

“The group recorded minimal revenue growth over the financial years under review and its financial performance in recent years has been volatile and is highly dependent on the supply and fluctuation of the raw materials costs such as paper rolls.

“The proposed diversification will facilitate the entry of the group into the property business, which will provide new sources of revenue and income stream for the future growth of the group.”

Ornapaper noted that it had on July 20, 2023, acquired two pieces of leasehold vacant lands in Melaka for a total cash consideration of RM30.75mil.

In view of the positive outlook of the property market and the assessment of the potential demand of industrial properties within the vicinity of the lands it had acquired, Ornapaper said it wishes to venture into property development and property investment businesses through the sales and/ or rental of the lands, after the subdivision of the said lands.

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Ornapaper , property , diversification

   

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