Concrete Engineering Products acquires land in Selangor

KUALA LUMPUR: Concrete Engineering Products Bhd, a manufacturer and distributor of pre-stressed spun concrete piles and poles, acquired a 347,666 sq ft land in Batang Kali, Selangor, for RM6.5 million.

In a filing to Bursa Malaysia on Dec 14, the company has entered into a sale and purchase agreement with Waiko Engineering Works Sdn Bhd to acquire a piece of leasehold land in Batang Kali, Selangor, together with a 1-storey factory and adjoining office erected thereon.

The land and buildings cost about RM5.5 million, while the machinery is RM1 million.

The buildings were last used as a factory for the production of pre-stressed spun concrete, but have been left idle for a number of years.

The property has a gross floor area of approximately 45,727 sq ft, while the buildings are about 16 years old.

“As at the latest audited financial statements of the vendor for the year ended Sept 30, 2008, the net book value of land, building and machinery is RM3.3 million,” it added.

With this acquisition, which is part of its growth strategy to expand its concrete piles business, Concrete Engineering Products expects to increase the production of concrete piles in order to meet the increasing demands of customers.