Ecomate to acquire factory, machinery in Muar to expand operations

• The company said it will be buying the factory, situated on 8,217 square metres of leasehold industrial land, for RM7 million, and pay another RM1.85 million for the machinery and components.

KUALA LUMPUR (Oct 9): Home furniture specialist Ecomate Holdings Bhd (KL:ECOMATE) has proposed to acquire a single-storey factory in Muar, Johor, along with machinery and components, from SWS Capital Bhd (KL:SWSCAP).

It is part of the company’s plans to establish a new factory and warehouse, while securing a permanent premises to support its business expansion, Ecomate said in a bourse filing on Wednesday. 

The company said it will be buying the factory, situated on 8,217 square metres of leasehold industrial land, for RM7 million, and pay another RM1.85 million for the machinery and components.

Ecomate noted that the new manufacturing facility is located near its existing plants, allowing for improved administrative control, reduced production costs, and enhanced product quality.

The company plans to rent out additional space within the property, potentially generating rental income.

Ecomate shares closed unchanged at 89.5 sen on Wednesday, giving a market capitalisation of RM318.65 million. Year-to-date, the stock has surged 22.6%.

SWS Capital rose half a sen or 2.44% to 21 sen, valuing the furniture and plastic ware manufacturer at RM63.48 million.

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