KUALA LUMPUR (March 13): Supermax Corp Bhd is buying a 5-acre piece of industrial land in Meru, Klang, Selangor for RM20 million for future expansion of its manufacturing capacity.

The rubber glove maker said the land is located next to its existing manufacturing plant No. 12, which will facilitate management control and operational synergies and efficiency.

"The plan is to construct a new manufacturing plant No. 16 over the next few years, which will increase the group's production capacity by about 4.5 billion pieces of gloves per year.  This acquisition is in the best interest of the group as it enables the group to expand and grow our business to ultimately accrue long term benefits to the shareholders," it added in a statement today.

In a separate bourse filing, Supermax said its wholly-owned subsidiary Maxter Glove Manufacturing Sdn Bhd had on Wednesday (March 11) entered into a sale and purchase agreement with Nishimen Industries (M) Sdn Bhd for the proposed acquisition of the said land. Nishimen is owned by directors Ter Hong Choor and Ter Wei Yi.

"The proposed acquisition does not have any effect on the share capital and substantial shareholders’ shareholdings of Supermax. It is also not expected to have any material effect on the net assets, gearing and earnings of Supermax for the financial year ending June 30, 2020," it added.

At 2.22pm, Supermax shares were down 16 sen or 9.04% at RM1.61, with 19.38 million shares done, bringing a market capitalisation of RM2.19 billion.