KUALA LUMPUR: VS Industry Bhd has entered into sale and purchase and construction agreements with Ipark Development Sdn Bhd to acquire six tracts of land with industrial buildings in Johor Bahru and Kulai for RM98.77mil.
Ipark Development is an 80%-owned subsidiary of AME Integrated Sdn Bhd, which in turn is 99.9% owned by AME Elite Consortium Bhd, according to VS Industry's filing with Bursa Malaysia.
The tracts, which measure a combined 413,681 sq ft, will increase VS Industry's production capacity for future expansion purposes, including capturing opportunities arising from the US-China trade tension
"Notwithstanding the recent wins, VSIB remains busy in negotiations with prospective customers and continues to pursue sales leads arising from the trade dispute.
"In view of this and barring unforeseen circumstances, the Group anticipates to secure more orders from both new and existing customers," it said.
It added that the purchase will allow it to continue to grow its business as its current manufacturing capacity is currently fully utilised.
Following the acquisition, the group plans to relocate its headquarters to the properties.