KUALA LUMPUR: Electronic manufacturing services (EMS) player EG Industries Bhd
intends to invest about RM30 million in a new manufacturing facility in Sungai Petani, Kedah.
The plant, located next to the group's existing factory, would boost the group's production floor space in Malaysia by 50% to 229,557 sq ft, the company said in a statement on Wednesday.
"The new facility will be dedicated to plastic injection moulding operations, which would expand the group's scope of EMS to include box-build, complementing its current expertise in printed circuit board assembly.
"It will give us greater capacity to serve a broader clientele, especially in undertaking end-to-end manufacturing from product design to final assembly," group chief executive officer and executive director Alex Kang said.
To date, Kang said, the company has secured box-build orders of RM150 million.
"At the same time, we are on the look-out for new customers, based on our track record and vertically-integrated services," he added.
Box-build refers to end-to-manufacturing services, from designing to shipping of completed products to end users.
The facility is targeted to start operations in the third quarter of the financial year ending June 30, 2016.
The capital expenditure of about RM30 million for the expansion, including acquisition of machinery, will be funded with proceeds from the recently completed rights issue.
Meanwhile, at the AGM on Wednesday, shareholders approved the renewal of a share buyback, allowing the group to repurchase up to 10% of its share capital. - Bernama
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