KUALA LUMPUR: Dufu Technology Corp Bhd
's wholly-owned subsidiary of Dufusion Sdn Bhd has entered into two sale and purchase agreements with Merbau Sejati Sdn Bhd for the acquisition of manufacturing plants in Pulau Pinang for a combined consideration of RM45.37mil.
In a filing with Bursa Malaysia, Dufu said the properties comprise two units of single-storey detached factory with a double-storey office building.
The combined land area of both properties is about 21,732 sqm.
According to Dufu, the acquisition enables it to increase its production capacity to expand its existing business activities in metal fabrication, machining and assembly.
It said the production space at the existing Bukit Minyak Plant for the Dufu Group has been well utilised, leaving minimal room for expansion.
"In addition, the Acquisition will place DUFU Group in better position to take up more business opportunities. DUFU Group will also enjoy an increased competitive edge by increasing its production capacity and derive economic value through improve economic of scale," it added.
Dufu said the acquisition is expected to be completed within 36 months from the date of the agreement.
