KUALA LUMPUR – Mah Sing Group Bhd will invest up to RM150 million in capital expenditure (capex) for the first phase of its proposed business diversification into the manufacture and trading of gloves and related healthcare products.
The capex includes the purchase of 12 new glove production lines and other plant and machinery such as boilers, chillers, compressors and waste water treatment plant as well as warehouse refurbishment work in Klang, Selangor.
“The group intends to fund the capex through internally generated funds, bank borrowings and the issuance of up to RM100 million nominal value of seven-year redeemable convertible sukuk murabahah announced on September 24,” it said in a filing with Bursa Malaysia today.
Yesterday, the property developer announced its plans to diversify into healthcare by venturing into glove manufacturing via indirect wholly-owned subsidiary Mah Sing Healthcare Sdn Bhd.
Mah Sing aims to start producing gloves at its first glove plant in Kapar, Klang with a built-up of 228,800 sq ft.
Phase one of the factory will house 12 new production lines with a maximum capacity of 3.68 billion pieces of gloves per annum.
The first six production lines are expected to be ready for operation as early as the second quarter next year, followed by another six production lines expected to be ready by the third quarter of next year. – Bernama, October 16, 2020
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