“Ecomate acquires Muar factory for RM7 million, enhancing production efficiency and exploring rental income opportunities, supporting its growth strategy and expansion plans.“
Kuala Lumpur, 10th Oct 2024, 03.56pm – Home furniture specialist Ecomate Holdings Bhd has announced plans to acquire a single-storey factory in Muar, Johor, along with machinery and components from SWS Capital Bhd.
This move is part of Ecomate’s strategy to establish a new factory and warehouse, ensuring permanent premises to facilitate its business growth, the company revealed in a filing on Wednesday.
The factory, located on 8,217 square metres of leasehold industrial land, will be purchased for RM7 million, with an additional RM1.85 million allocated for the machinery and components.
Ecomate highlighted that the new manufacturing facility’s proximity to its current plants will provide better administrative oversight, lower production costs, and improve product quality.
The company also plans to lease out extra space within the facility, potentially creating an additional source of rental income.
Ecomate’s shares remained steady at 89.5 sen on Wednesday, with a market capitalization of RM318.65 million. So far this year, the stock has increased by 22.6%.
SWS Capital saw a rise of half a sen, or 2.44%, to 21 sen, giving the furniture and plastic ware maker a valuation of RM63.48 million.