KUALA LUMPUR (Aug 14): Coraza Integrated Technology Bhd has acquired a parcel of freehold land in Penang for RM17.69 million to boost its production capacity.

The land, measuring 8,538 square metres, has offices and factories erected on it, said the integrated engineering solution provider in a bourse filing.

Coraza said the acquisition is a strategic move for the group given its prime location opposite the group's existing plant in Nibong Tebal.

“This acquisition promises an immediate increase in manufacturing capabilities while the construction of a new factory adjacent to the current Nibong Tebal plant is underway. The construction is scheduled to begin in the third quarter of 2023 and is estimated to be completed by the third quarter of 2024,” it added.

The group said its wholly-owned subsidiary, Coraza Systems Malaysia Sdn Bhd, is buying the land from Huhtamaki Foodservice Malaysia Sdn Bhd, a manufacturer of paper cups and paper plates. The principal activity of Coraza Systems is the fabrication of sheet metal and precision machined components.

The acquisition will be funded by an internally generated fund and bank borrowings, said Coraza.

Coraza’s shares price closed down 0.5 sen or 0.75% to 66 sen on Monday (Aug 14), giving the group a market capitalisation of RM283 million.