KUALA LUMPUR (April 19): HLT Global Bhd is acquiring a 2.55-acre land in Kuala Langat, Selangor for RM16.25 million to boost its glove-dipping production capacity.
In a bourse filing, the group said it is operating at peak production capacity, and hopes to raise its production capacity by about 80% via the acquisition.
"In view of the favourable prospects of the rubber gloves' industry, the group envisages strong demand for new glove-dipping lines driven by the number of new entrants that have ventured/diversified into rubber gloves' manufacturing during the year as well as the expansion plan embarked by the existing rubber gloves' manufacturers."
"Hence, the proposed expansion of production capacity through the proposed acquisition would enable its wholly-owned subsidiary HL Advance Technologies (M) Sdn Bhd (HLA) to secure/undertake more orders for the fabrication of glove-dipping lines from its existing/new customers, thereby enhancing the revenue, profitability and future sustainability of the group," it added.
HLT Global said HLA is buying the leasehold land in Kuala Langat from Sri Taming Sdn Bhd. The property includes a single-storey detached factory and a three-storey annexed office building.
Noting that the land is located close to its existing factory premises, it said the purchase will facilitate more effective administration and management functions by the management over the two factory premises.
The group intends to fund the cash acquisition through internal funds of the group and its subsidiaries.
It expects the acquisition to be completed by the third quarter of 2021.
HLT Global's share price closed down one sen or 0.93% at RM1.06, giving the group a market capitalisation of RM749 million. The counter saw 33.44 million shares traded.