EG Industries to invest RM30m in new plant

PETALING JAYA: Electronic manufacturing services (EMS) player EG Industries Berhad plans to invest about RM30 million for a new manufacturing facility in Sungai Petani, Kedah.

The new facility, located next to the group’s existing factory in Sungai Petani, would boost its production floor space in Malaysia by 50% to 229,557 sq ft.

EG Industries group CEO and executive director Alex Kang said that the new manufacturing facility would be dedicated to plastic injection moulding operations, which would expand the group’s scope of EMS to include boxbuild, complementing its current expertise in printed circuit board assembly.

“The new facility will accord us greater capacity to serve larger clientele, especially in undertaking end-to-end manufacturing from product design to final assembly,” Kang said in a statement yesterday.

To date, he said the company has secured box-build orders of RM150 million that are slated to be fulfilled in both the existing and new facilities.

At the same time we are on the lookout for new customers, based on our track record and vertically-integrated services.

Box-build refers to end-tomanufacturing services, from designing to shipping of completed products to customers’ end users.

The facility is targeted to begin 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 machineries, will be funded from proceeds raised through a recently completed rights issue.

Meanwhile, at the AGM yesterday, shareholders approved the company’s renewal of share buy-back.

Under the share buy-back, the group is authorised to repurchase up to 10% of the issued and paid-up share capital.