KUALA LUMPUR : Concrete Engineering Products Bhd (Cepco) has acquired a leasehold industrial real estate and a disused factory in Batang Kali, Selangor, for RM6.5 milion to boost its production capacity.

In a statement to the exchange yesterday, Cepco said it had signed a sale and purchase agreement with Waiko Engineering  Works Sdn Bhd for the property, which includes a single-storey factory on 32,299 sq m of land.

It said the buildings were last used as a factory for the production of pre-stressed spun concrete but had been left idle for a number of years.

“The proposed acquisition is part of the business growth strategy of Cepco to expand its concrete piles business. With this acquisition, Cepco will be able to increase its production of concrete piles in order to meet the  increasing demands of customers.

“This proposed acquisition will also enable Cepco to increase its market share of the concrete piles market in Malaysia and to provide us with the capability to undertake a larger volume of business,” Cepco said.

The purchase would be financed by internal funds and bank loans and is expected to be finalised within nine months.


This article appeared in The Edge Financial Daily, December 15, 2009.