KUALA LUMPUR (July 17): Diversified group Kumpulan Perangsang Selangor Bhd's (KPS) indirect wholly-owned subsidiary CPI (Penang) Sdn Bhd is buying a 4.5-acre piece of land in Bayan Lepas Industrial Park, Penang for RM27.7 million, on which it intends to build a new electronic manufacturing services (EMS) factory.

In a statement today, KPS said CPI has entered into a sales and purchase agreement with Penang Development Corp for the land acquisition. The new land is over three times bigger than the 1.4-acre land that currently houses the existing EMS facility.

"Construction of the new factory is expected to commence in the first half of 2019, with target completion in 2020. The land, being the last available plot in Bayan Lepas Industrial Park, is located some 500m from CPI's engineering thermoplastics (ETP) manufacturing division and 2.5km from the existing EMS facility," it added.

KPS chief executive officer Ahmad Fariz Hassan said the land acquisition will allow CPI to expand its production capacity in order to meet the growing demand in the EMS industry.

"The land acquisition is the first step in executing our long-term value creation plan to accelerate CPI's high-growth phase. With the ever-growing demand in the global EMS industry, we certainly foresee an immense opportunity for CPI to capture.

"CPI, via its products, has amassed a diverse global clientele including market leaders and multinational companies. By 2020, CPI will be well-positioned to not only capture the anticipated future influx in demand, but also extend CPI's competitive edge across both the ETP and EMS industries," he added.

KPS shares closed up 2 sen or 1.05% at RM1.93 today, for a market capitalisation of RM1.04 billion.