13 Sep 2024 PGF Capital acquires Kulim land for RM40mil to boost insulation production
KUALA LUMPUR: PGF Capital Bhd has proposed a piece of freehold land measuring 96,720 square metres in Kulim, Kedah for RM40mil.
In a filing with Bursa Malaysia, the insulation producer announced that its wholly-owned subsidiary, NetZero Technology Sdn Bhd, has entered into a sales and purchase agreement (SPA) for the acquisition of freehold land in Pekan Padang Meha, Kulim, Kedah, from Senam Jaya Sdn Bhd. This land will be developed into the Kulim East Industrial Park.
In a filing with Bursa Malaysia, the insulation producer announced that its wholly-owned subsidiary, NetZero Technology Sdn Bhd, has entered into a sales and purchase agreement (SPA) for the acquisition of land in Pekan Padang Meha, Kulim, Kedah. The land, which will be developed into the Kulim East Industrial Park, is being purchased from Senam Jaya Sdn Bhd.
PGF said the land shall be developed in phases. Under Phase 1, a new manufacturing plant will be built to increase the group’s total annual insulation production capacity by 160% or 40,000 tonnes, from the existing 25,000 tonnes to 65,000 tonnes.
It said the construction of the new plant is slated to commence in early 2025, with commercial operations expected to begin by the first half of 2026.
Meanwhile, Phase 2 of the expansion will add a further 20,000 tonne of capacity, bringing the total to 85,000 tonne, with completion anticipated by first half of 2028.
“We are excited about the prospects this land offers, given its large acreage, which is sufficient to cater to our expansion needs for the next five years. Its strategic location, with close proximity to both our existing plant and the Penang Port, further enhances its value.
“We are building an additional annual capacity of 40,000 mt to meet the growing demand driven by the global trend towards sustainability and energy efficiency. The increased focus on net zero targets presents significant opportunities for PGF Capital, as insulation plays a crucial role in reducing energy consumption and carbon emissions,” executive director cum group chief executive officer Fong Wern Sheng said in a statement.
