Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on September 29, 2015.

 

KUALA LUMPUR: MMC Corp Bhd’s wholly-owned subsidiary, Senai Airport City Sdn Bhd (SACSB), is leasing 24.75 acres (10.02ha) of its industrial land to Japanese food products supplier Fuji Oil Asia Pte Ltd for RM53.9 million.

Fuji Oil Asia, which is part of Fuji Oil Group, has entered into a lease agreement with SACSB for 60 years to construct and operate its manufacturing facility, said MMC Corp in a statement yesterday.

Headquartered in Japan, Fuji Oil Asia is a global supplier of intermediate food ingredients, particularly specialty oils and fats, confectionery and bakery, soy protein and related consumer food products.

The facility will be its largest outside Japan and is located adjacent to its major client: US-based confectionery Hershey’s largest chocolate manufacturing facility outside of North America.

MMC Corp group managing director Datuk Seri Che Khalib Mohamad Noh welcomed Fuji Oil Asia as the latest addition to Senai Airport City.

“Strategically located for domestic and international business, the area (Senai Airport City) has been dubbed by local and international investors as a southern gateway for high-value industries and [a] hub for international logistics industries.

“Investors from Singapore, [the] US, Japan and [South] Korea recognised the advantages of Senai Airport City, and I am confident that Fuji Oil Asia will gain from these advantages as well,” said Che Khalib.

SACSB is the master developer of the 2,718-acre integrated industrial development known as Senai Airport City, with various industrial segments such as free industrial zones, hi-tech and general manufacturing, aerospace maintenance, repair and overhaul, as well as logistics and mixed developments, which are currently being developed in phases with 40% completed to date.

According to the statement, MMC Corp is leveraging on the sale and/or lease of its strategic property assets in Johor, comprising almost 5,000 acres of industrial land in both Senai Airport City and the Tanjung Bin Petrochemical & Maritime Industry Centre developments. 

It is also looking to unlock the value of almost 500 acres of pockets of land and buildings mainly in the central and northern states to support its revenue growth in the next five years.  

MMC Corp’s share price, which dipped to a low of RM1.57 on Aug 24, has been recovering. It closed at RM2.18 yesterday, up three sen or 1.4% from last Friday, with a market capitalisation of RM6.64 billion.

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