Econframe acquires LYASB, TUSB to diversify, expand business

Publish date: Wed, 18 Jan 2023, 03:49 PM

KUALA LUMPUR: Econframe Bhd today announced the expansion of its product offering and business diversification through two acquisitions - Lee & Yong Aluminium Sdn Bhd (LYASB) and Trans United Sdn Bhd (TUSB).

Econframe acquired a 65 per cent equity interest in LYASB, which is principally involved in the fabrication and installation of aluminium glazing, glass products and façade works comprising aluminium windows and glass doors.

It also bought a 100 per cent equity interest in TUSB, for the land on which LYASB's factory is located.

Econframe managing director Lim Chin Horng said the business diversification will help the brand grow further, adding mettle to its already strong presence in the industry.

"We have the expertise in terms of door set in the market, and we currently have 700 to 800 customers, so we want to let LYASB to tap into this segment...that is the main purpose of these acquisitions.

"In the first two years, we are probably looking at about RM60 to RM80 million in revenue from LYASB," he told a press conference after announcing the company's business expansion plan here, today.

He said LYASB had provided a profit guarantee of RM4 million annually for the next three years.

"Our current order book is about RM90 million which is going to last us for about one-and-a-half years," he added.

Lim further said that the acquisition will help expand the group business in providing aluminium glazing, glass products and façade systems.

"We believe that this decision to grow our company will highlight synergistic investment for our company as well as serve as a platform for us to capitalise on LYASB's expertise," he added.

  - Bernama

Labels: EFRAME

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