business

Hup Seng acquires land in Batu Pahat for RM17.5 million

Hup Seng Industries Bhd's (HSIB) unit, Hup Seng Perusahaan Makanan (M) Sdn Bhd, has acquired two pieces of land in Batu Pahat, Johor, from Syarikat Koon Fuat Industries Sdn Bhd for RM17.49 million.

The biscuit manufacturer said the purchase price for the land was arrived at on a "willing-buyer-willing-seller" basis.

The land is adjacent to HSIB's current factory and is ideal for future expansion and centralised management, it said.

"The acquisitions will increase the group's factory premises by nearly 57% as existing facilities are congested and the current capacity may not be able to cope with the expected increased demand in 2017 and beyond," said HSIB in a filing to Bursa Malaysia.

The acquisition will enable the group to rationalise and modernise its production lines with the addition of new lines and corresponding support facilities and improve the layout of its packaging areas for efficient production processes. – Bernama, March 9, 2016.

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