PA Resources Bhd’s (PA) wholly-owned subsidiary, PA Extrusion (M) Sdn Bhd, has proposed to acquire two parcels of industrial land measuring 72,840 square metres (equivalent to 7.3 hectares or 18 acres) for RM21 million.
In a statement today (Feb 19), the aluminium extruder company said as the lands are located within the vicinity to its existing factory in Batang Berjuntai, Kuala Selangor, it had planned to build a new factory on the said lands.
“Upon completion of the acquisition, PA will build a new factory on the lands, which will double its production capacity, in phases, from 3,200 tons a month to approximately 7,000 tons,” it said today.
The proposed acquisition will be funded via internal generated funds and bank borrowings, the group added.
PA executive chairman Tan Sri Chan Kong Choy expressed his delight to announce this expansion plan, which fits the group’s long term growth strategy.
“With our new factory, we will be able to match the escalating demand from our solar renewable energy clients. Additionally, it will enable us to diversify both our product range and the markets we serve, hence providing the group with additional streams of income.
“With these objectives in mind, we aim to expedite the land acquisition process and promptly initiate the construction of our new factory.
“We are confident that this investment will not only boost our production capacity, contribute to the country’s economic, providing employment opportunities as well as advancing socioeconomic development within local communities in the area,” he said.
PA group managing director Tan Sri Lau Kuan Kam added: “The growing demand for solar and renewable energy remains promising.
“We are proud that the group is in a position to contribute to the growth of green energy by providing lightweight, durable components and cost-effective material for solar panels.”
