ASM Automation Group Bhd has released further details on its proposed acquisition of a leasehold industrial property in Mukim Hulu Kinta, Perak, highlighting plans to redevelop the site into a new manufacturing facility to support its future growth.

The acquisition will be carried out through its wholly owned subsidiary, Arrow Systems Sdn Bhd, under a non-related party transaction. The property is located at Persiaran Perindustrian Pengkalan 17 in Kawasan Perindustrian Pengkalan, Lahat, an established industrial area within the Kinta district near Ipoh.

The site currently comprises a single-storey detached factory with a built-up area of approximately 1,093.93 sq m (11,774.96 sq ft). The factory, which is around 32 years old, is presently used by the vendors for the manufacture of wooden products, a business unrelated to ASM Automation's operations.

Rather than utilising the existing building, ASM plans to demolish the factory and construct a brand-new manufacturing facility on the land. The company said the total development cost has yet to be determined as it will depend on the final factory design and prevailing construction costs.

Funding for the new factory will come from the proceeds raised during ASM Automation's ACE Market initial public offering (IPO), with RM7.9 million already allocated for the project.

Based on the current timeline, the acquisition is expected to be completed by the first quarter of 2027. Subject to obtaining the necessary local authority approvals by the third quarter of 2027, construction is expected to begin in the third quarter of 2027 and be completed by the second quarter of 2029.

Key Takeaways

• ASM Automation is acquiring an industrial property in Mukim Hulu Kinta, Perak, as part of its long-term manufacturing expansion strategy.
• The existing 32-year-old factory will be demolished to make way for a new purpose-built manufacturing facility.
• The property is located in the established Kawasan Perindustrian Pengkalan industrial area near Ipoh.
• The current factory is used for wooden product manufacturing, which is unrelated to ASM Automation's business.
• RM7.9 million from the company's IPO proceeds has been allocated to fund the construction of the new factory.
• The acquisition is targeted for completion by Q1 2027, construction is expected to begin in Q3 2027, and the new facility is scheduled for completion by Q2 2029.