PETALING JAYA: Mieco Chipboard Bhd
has entered into a conditional sale and purchase agreement with G-Force Sdn Bhd to dispose of two parcels of industrial land in Kuantan, Pahang for RM40mil.
In a filing with Bursa Malaysia, the manufacturer of particle boards said the aim of selling the land was to ensure its sustainability, improve its liquidity and fortify the group’s financial position.
In 2023, the group completed the rationalisation of the Gebeng Plant and Kuala Lipis Plant by relocating and consolidating both operations at the Kuala Lipis Plant.
“This exercise aimed to reduce fixed overhead costs and to improve production efficiency with all the operations centralised in one location, as well as to reduce its gearing level.
“Consequently, the property has been put up for sale for more than a year,” said the company.
