Ikhmas Jaya defers construction of new manufacturing facility

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KUALA LUMPUR (Sept 28): Piling specialist Ikhmas Jaya Group Bhd has once again postponed the construction of its new prefabricated building system manufacturing facility in Teluk Panglima Garang, Selangor.

This is the second postponement this year after the earlier deferment on March 30.

In a filing with Bursa Malaysia today, the company said the construction would be delayed until "there are sufficient successful tenders for projects which could utilise the MM2 prefabricated building components (or insulated reinforce concr panel) resulting in the need for the relocation and expansion of the new manufacturing facility".

The group had as early as October 2014 sought to convert the land use and set up the facility, and had projected to obtain the certificate of completion and compliance by end-February 2017.

According to its listing prospectus dated June 30, 2015, the new facility was expected to have a total built-up area of 46,150 sq ft, including a 20,000 sq ft warehouse, and was originally set to commence operations in early August 2016.

Last September, the company received conditional approval from the Department of Environment of Selangor to convert the land use from agriculture to light industry.

Ikhmas Jaya's share price rose 0.5 sen or 2.04% to close at 25 sen today for a market capitalisation of RM136.34 million.