SCIB has acquired five industrial leasehold plots in the Demak Laut Industrial Park, Kuching, Sarawak totalling 8.8544 hectares (approximately 21.88 acres) for RM21.6 million to be fully paid in cash from combination of internally generated funds and bank borrowing it said.
Mr. Ku Chong Hong, Group Managing Director of SCIB commented on the acquisition, “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.”
The intended use of the newly acquired land is for constructing an industrial factory to produce concrete-related products such as Spun Piles, Spun Pipes, and Reinforced Concrete Products. The move to Demak Laut Industrial Park from the current factory at Pending Industrial Estate is a strategic decision by SCIB to leverage the larger land size for enhanced production capacity. SCIB envisages the new factory to commence construction by the 2nd Quarter of 2024, and to be completed by 1st Quarter of 2025, and the factory should be contributing positively to the Company’s earnings from 2nd Quarter of 2025.
The group is confident that this land acquisition and the subsequent increase in production capacity will significantly contribute to the Company’s growth and ability to meet future market demands, thereby enhancing shareholder value in the long run.
