Ku Chong Hong
KUCHING (Jan 28): Industrialised building systems specialist Sarawak Consolidated Industries Bhd (SCIB) announced the acquisition of five industrial leasehold plots in the Demak Laut Industrial Park here, a move set to significantly enhance the company’s production capabilities in line with Sarawak’s booming infrastructure development.
The acquisition, involving a total five lots of land, totalling 8.8544 hectares (approximately 21.88 acres) in the Muara Tebas Land District, represents a strategic expansion of SCIB’s operational footprint.
In a statement, it explained that the total purchase consideration for the land is RM21.6 million and shall be fully paid in cash, from 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 group managing director Ku Chong Hong commented, “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 per cent.
“This expansion aligns perfectly with the anticipated increase in demand driven by Sarawak’s rapid infrastructure development plans in the coming years.”
He added, “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.”
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 second quarter of 2024, and to be completed by 1Q25, and the factory should be contributing positively to the company’s earnings from 2Q25.
SCIB 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.