SCIB buys Kuching land for RM21.6 mil

KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) is acquiring five industrial leasehold plots in the Demak Laut Industrial Park, Kuching, Sarawak for RM21.6mil cash.

The industrialised building systems specialist, in a statement, said the acquisition, involving five lots of land, totalling 8.8544 hectares in the Muara Tebas Land District, represented a strategic expansion of SCIB's operational footprint.

“The total purchase consideration for the land is RM21.6mil and shall be fully paid in cash, from a combination of internally generated funds and bank borrowing. This investment marks a pivotal step in the company's growth strategy, positioning SCIB to meet the burgeoning market demand,” SCIB said.

“This land acquisition is a testament to our commitment to expanding SCIB's capabilities and market reach. The new location at Demak Laut Industrial Park, just fifteen kilometres from Kuching City Centre, is not only strategically advantageous but also provides us with the necessary space to increase our production capacity by almost 30%.

“This expansion aligns perfectly with the anticipated increase in demand driven by Sarawak's rapid infrastructure development plans in the coming years,” group managing director Ku Chong Hong said.

“While we are aware of the ongoing market fluctuations, SCIB remains steadfast in our commitment to delivering value to our shareholders. This investment is a clear indication of our dedication to long-term growth and profitability, ensuring SCIB continues to play a significant role in Sarawak's industrial landscape,” he added.

The intended use of the newly acquired land is for constructing an industrial factory to produce concrete-related products and reinforced concrete products.

SCIB envisages the new factory to commence construction by the second quarter of 2024, and to be completed by the first quarter of 2025, and the factory should be contributing positively to the company’s earnings from the second quarter of 2025.