KUALA LUMPUR, April 23 (Bernama) -- Biomass boiler design and manufacturing firm, Boilermech Holdings Bhd, is acquiring three adjoining portions of vacant industrial land totalling three hectares (30,000 square metres) in East Java, Indonesia for RM15.66 million.
The acquisition is done through PT Boilermech Manufacturing Indonesia (PTBMI), which is wholly-owned by Boilermech and its subsidiary PT Boilermech, from Indonesia’s PT Maspion Industrial Estate.
“The proposed acquisition is part of Boilermech and its subsidiaries’ (Group) strategic expansion plans to establish a manufacturing base in Indonesia,” it said in a filing to Bursa Malaysia today.
The Group intends to construct a manufacturing plant on the acquired land, mainly for the fabrication of palm oil mill boilers.
“This will enable the Group to better serve the vast palm oil mill market in Indonesia, which is the top palm oil producing country in the world and a major contributor to the Group’s core business of palm oil mill boilers,” it said.
The proposed acquisition serves to safeguard and strengthen the Group’s business presence and continuity in Indonesia.
The acquired land is also situated in a mature industrial area with reputable tenants and there is a working jetty located about 4.1 km from the land which will facilitate sea transportation for the Group’s operations, it added.
“Once the manufacturing plant is constructed and becomes fully operational, the Group anticipates greater competitiveness in its Indonesian market due to significant improvement in logistics and labour efficiencies.”