Wegmans gets nod for new factory

KUALA LUMPUR, Aug 15 (Bernama) – Wegmans Holdings Bhd has obtained necessary regulatory approvals to commence construction of its new factory in Mukim Parit Jawa, Muar, Johor.

 Managing Director Keh Wee Kiet said the factory was expected to commence production earlier than its original time frame, which was by the second quarter of 2020 (2Q20).

“We expect that this will contribute positively to our future earnings,” he said, adding that the construction would be funded by proceeds from its initial public offering earlier this year.

Keh said the new factory would be able to double the company’s current annual production capacity and enable the company to meet the rising demand for its home furniture products.

“Our existing production capacity is close to full utilisation rate and it will remain in operation. Overall, we remain positive on our prospects, going forward,” he said.

The factory would be built on the company’s 8.5 hectare land and would include a new management office, showrooms and workers’ hostel.

The international furniture exporter saw a net loss of RM1.65 million in 1Q18 but recorded a net profit of RM3.72 million in 2Q18.

“The net loss was mainly on the absence of one-off expenses arising from the listing exercise in March 2018.

Additionally, the lower selling, marketing and administrative expenses further boosted the bottom line as well,” it added.

-- BERNAMA