SCIB Bolsters Position in Sarawak with Strategic Land Acquisition and Asset Revaluation

In a strategic move to amplify its production capabilities, Sarawak Consolidated Industries Bhd (SCIB) has finalized the acquisition of leasehold plots in Demak Laut Industrial Park, Kuching, for RM21.62 million cash. This acquisition, involving 8.85 hectares some 15km from Kuching City Centre, is part of SCIB’s initiative to expand its operational capacity, as stated in its earlier announcement on Jan 17.

The upcoming industrial factory, set to commence construction in the second quarter of 2024 and complete by the first quarter of 2025, will specialize in the production of concrete-related products such as spun piles, spun pipes, and reinforced concrete products. SCIB anticipates initiating operations in the second quarter of 2025, following the relocation of its current factory from the Pending Industrial Estate to this larger site, facilitating an almost 30% increase in production capacity.

“Transitioning to the new Demak Laut site will not only bolster our production efficiency but also repurpose the land at Pending Industrial Estate for potential mixed development projects, pending feasibility studies,” SCIB noted.

Ku Chong Hong, SCIB’s group managing director, emphasized the strategic significance of the expansion, aligning with Sarawak’s accelerating infrastructure development plans. “Despite market fluctuations, SCIB is committed to enhancing shareholder value and maintaining a pivotal role in Sarawak’s industrial sector,” Ku stated.

The announcement comes in the wake of recent market turbulence, where SCIB witnessed a notable sell-off in its shares. Despite this, the firm demonstrated resilience with a partial recovery, underscoring its steadfast approach to growth and profitability.

In parallel, SCIB has undertaken a revaluation of its property assets, resulting in an increase in its net asset value by RM52.3 million, or eight sen per share. The revaluation, which accounted for a market value of RM100 million compared to the pre-revaluation carrying value of RM31.62 million, has positively adjusted its NTA per share from 13 sen to 21 sen as of the end of September.

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