SUPERMAX Corp Bhd is purchasing about 2ha (5 acres) of freeholding industrial land for RM20 mil to grow its manufacturing capacity by about 4.5 billion pieces of gloves per year.
The glovemaker said in a March 13 filing with Bursa Malaysia that its wholly-owned unit Maxter Glove Manufacturing Sdn Bhd had entered into a sale and purchase agreement (SPA) with Nishimen Industries (M) Sdn Bhd to acquire the plot of land in Meru, Klang.
The SPA would not have any effect on the share capital and substantial shareholders’ shareholding of the group, nor will it have any material effect on the group’s net assets, gearing and earnings for the financial year ending June 30, said Supermax.
As the land is located next to Supermax’s Plant No. 12, Supermax said it would be able to facilitate management control and operational synergies and efficiency.
“The plan is to construct new manufacturing plant No. 16 over the next few years, which will increase the group’s production capacity by about 4.5 billion pieces of gloves per year. This acquisition is in the best interest of the company. It enables the company to expand and grow our business to ultimately accrue long term benefits to the shareholders,” the glovemaker said.
Supermax’s shares were last done at RM1.70 at 4.20pm, down 7 sen, with 31.7 million shares changing hands. – March 13, 2020
