KUALA LUMPUR: SDS Group Bhd
’s (SDSG) wholly owned subsidiary London Bakery Sdn Bhd has acquired 14.32 hectares in Tebrau, Johor for RM101.7 million cash.
In a filing with Bursa Malaysia, the investment holding company primarily involved in the manufacturing and retailing of bakery products said the proposed acquisition is in line with SDSG and its subsidiaries’ long-term strategy to expand its production capacity and strengthen its earnings base and market positioning.
It said the group intends to construct a new manufacturing facility on the subject property which is expected to be equipped with purpose-built production lines, including the requisite machinery, equipment and tools, for the production and packaging of the group’s products.
"This is expected to enhance the group’s overall production capacity and support its ongoing business expansion initiatives to expand its footprint.
"The group is currently conducting feasibility studies in respect of the proposed development, including the expected facility layout and construction costs,” it said.
In addition, the proposed acquisition is expected to provide operational and logistic advantages, and the close proximity of the subject property to the group’s existing facility in Johor Bahru would enable the group to streamline its logistics and achieve positive synergies across its business operations.
"The proposed acquisition is also expected to facilitate better management oversight over the group’s eventual expanded manufacturing operations, thereby enhancing overall operational efficiency,” it added.
Further, upon completion of the proposed development, SDS Group said the additional production capacity and resulting operational efficiencies are expected to further support the group’s earnings. - Bernama
