Ta Win offloads idle factory in Port Klang for RM44.5 mil

• Ta Win said the RM3.6 million net loss from the sale is reasonable, as the facility was custom-built for copper wire and rod production, making it less attractive to other buyers. The plant stopped operations in November 2024 due to high costs and continued losses.

KUALA LUMPUR (June 3): Loss-making Ta Win Holdings Bhd (KL:TAWIN) is disposing of a parcel of industrial land with a single-storey detached factory in Port Klang to Metal Recovery Industries Sdn Bhd (MRI) for RM44.5 million.

In a bourse filing on Tuesday, the copper wire and rod manufacturer said its wholly owned subsidiary Ta Win Industries (M) Sdn Bhd (TWI) has entered into a conditional sale and purchase agreement with MRI for the 16,178 sq m leasehold land.

MRI is a privately held company involved mainly in trading and processing metal scrap, timber and related products, as well as plantation ownership.

According to Ta Win, it had acquired the property in February 2022 for RM35 million. The property had a carrying value of RM7.43 million as of Sept 2 last year.

Ta Win said the RM3.6 million net loss from the sale is reasonable, as the facility was custom-built for copper wire and rod production, making it less attractive to other buyers.

The plant stopped operations in November 2024 due to high costs and continued losses.

Ta Win said the facility is pledged to a lender for a loan of RM18.7 million, with yearly interest of about RM992,000.

Ta Win plans to use RM23.31 million from the property sale for working capital and RM18.72 million to repay debt, including the loan on the facility. The deal is expected to be completed in the second half of 2025.

As of March 2025, Ta Win had RM117.4 million in short-term and RM18 million in long-term borrowings, with RM37.1 million in cash.

The company has posted losses for 12 straight quarters. For the third quarter ended March 31, 2025, its net loss widened to RM56.2 million from RM4.6 million a year earlier, mainly due to impairments, asset sales and weaker margins in its copper business from higher raw material costs.

Shares in Ta Win were unchanged at two sen on Tuesday, giving it a market capitalisation of RM73.4 million.

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