KUALA LUMPUR (Oct 14): Electronics manufacturing services (EMS) provider VS Industry Bhd is buying six pieces of land with industrial buildings in Senai, Johor for RM98.8 million to expand its capacity.

In a filing with Bursa Malaysia today, VS Industry said the acquisition — from AME Elite Consortium Bhd’s subsidiary Ipark Development Sdn Bhd — will be funded via internally generated funds and bank borrowings. 

The group said the six plots of land, measuring 413,682 sq ft in total, will increase its production land area by almost 25% to about 50 acres (20.23ha) in Malaysia.

VS Industry managing director Datuk Gan Sem Yam said in a statement that the acquisition will enable the group to continue growing its business as its current manufacturing capacity is already fully taken up. 

“The timing couldn’t be better as we have secured yet another new customer from the US, and this comes hot on the heels of us clinching Victory Innovations as a key customer in August 2020. We will be producing home appliances for this new customer in the buildings bought under the acquisition next year,” said Gan. 

He said the group will relocate its headquarters to the newly acquired land to free up space at the existing manufacturing facilities. 

Barring unforeseen circumstances, the acquisition is expected to be completed by June 2021, the group said. 

As at the time of writing today, VS Industry’s share price was four sen or 1.68% lower at RM2.34, valuing the group at RM4.42 billion. Year to date (YTD), the counter has risen by 74.6% from RM1.34.