Central Global Bhd (Central Global), a producer of industrial masking tapes and label stocks as well as general building contractor, is in the midst of finalizing the purchase of machinery that will triple its industrial masking tapes production capacity.
With the purchase of the new machinery, the Group’s factory in Kuala Muda, Kedah, will have the capacity to produce up to 70 million square metres (sqm) of tapes per year from 20 million sqm annually from the old machinery.
Central Global executive chairman Dato’ Faisal Zelman says, “This is perfect timing for us as we currently have new potential orders of up to 30 million sqm of masking tape orders from existing customers. The new machinery will make us even more productive and efficient while allowing us the capacity to grow the business.”
“We are able to fulfil backlog orders worth RM10 million from July and August that had been delayed due to the enhanced movement control order that was extended by two weeks in parts of Kuala Muda to the end of July. We were only able to restart operations from August 2, 2021 and only at 60% capacity for employees, but we are pleased to announce that all our employees will be fully vaccinated by August 23, 2021.”
The purchase of new machinery for the Group’s factory in Kuala Muda will be partly financed through a private placement exercise of 18 million new shares which is expected to raise approximately RM26.0 million, which included financing for a construction project in Penang.
The production expansion of the Group’s manufacturing arm is in conjunction with Central Global’s growth initiatives for its construction segment. The Group signed a MoU in early June with Multi Scopes Engineering Sdn Bhd to form a joint venture to bid for building a RM250 million sewage treatment plant in Kwasa Damansara, Selangor and was awarded an RM101 million construction project in April 2021 to upgrade the water supply system in Lahad Datu, Sabah.
