KUALA LUMPUR (April 23): Tashin Holdings Bhd’s (Tashin) wholly-owned subsidiary, Tashin Hardware Sdn Bhd (THSB) has entered into a sale and purchase agreement with CSC Steel Sdn Bhd to acquire two pieces of industrial land and buildings in Prai, Penang for RM43.5 million.
In a filing with Bursa Malaysia today, Tashin said the proposed acquisition represents the group’s efforts towards increasing its production capacity in steel processing of slit coils, steel sheets and steel manufacturing products.
“It will allow the group to expand its steel processing manufacturing facilities by adding a new slitting and rotary/shearing machines and increase storage capacity for raw materials and finished products at the existing factory.
“The annual production capacity for the group’s steel processing and products manufacturing facilities is expected to increase from the existing 149,520 tonnes to 222,720 tonnes a year,” it said.
The property is strategically located next to Tashin’s existing factory.
Tashin said the proposed acquisition is not expected to have a material impact on the company’s earnings and earnings per share for the financial year ending Dec 31, 2021, but is expected to contribute positively to the future earnings of the group.
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