Lay Hong to invest RM16.6 million in liquid egg processing facility in Pasir Gudang
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Lay Hong Bhd will invest RM16.6 million for a new pasteurised liquid eggs processing facility in Iskandar Halal Park, Pasir Gudang, Johor to cater the needs of the southern region and Singapore market as well as addressing logistics costs.
The group told the stock exchange that the investment will include the purchase of a semi detached factory from Tentu Teguh Sdn Bhd for RM5.2 million. The project is expected to be completed within six to seven months upon delivery of certificates of fitness from the developer.
The investment cost will be financed through a combination of internally generated funds and bank borrowings.
Lay Hong said the new facility is also in line with the group’s focus on enhancing the sales of downstream products.
Its share price gained one sen or 1.05% to close at 96 sen with 4.97 million shares done.
Questions & Answers
Q.What is the primary purpose of Lay Hong's new investment in Pasir Gudang?
What is the primary purpose of Lay Hong's new investment in Pasir Gudang?
The new facility is intended to cater to the needs of the southern region and Singapore market. It will also help the group address logistics costs for its products in those areas.
Q.How long is the project expected to take for completion?
How long is the project expected to take for completion?
The project is expected to be completed within six to seven months. This timeline begins once the certificates of fitness are delivered by the developer of the semi-detached factory.
Q.How will Lay Hong fund the RM16.6 million investment?
How will Lay Hong fund the RM16.6 million investment?
The investment cost for the new liquid egg processing facility will be financed through a combination of internally generated funds from the company. Bank borrowings will make up the remainder of the required capital.
Q.What specifically is Lay Hong purchasing as part of this investment?
What specifically is Lay Hong purchasing as part of this investment?
As part of the investment, Lay Hong will purchase a semi-detached factory from Tentu Teguh Sdn Bhd. This factory alone accounts for RM5.2 million of the total investment.