Friday, 27 April 2012

WZ Steel buys industrial tract in Indonesia

KUALA LUMPUR (April 27) : WZ Steel Bhd is acquiring an industrial land in Indonesia’s West Java province for IDR 14.58 billion (RM5.02 million) to build a new factory in the neighbouring country.

In a statement to the Bursa Malaysia, WZ Steel said it is buying the leasehold tract within the Delta Silicon industrial area in the Lippo Cikarang enclave, from Indonesia-based property developer PT Lippo Cikarang Tbk.

“The proposed acquisition is part of WZ Steel’s expansion plan to set up a factory in Indonesia. The total estimated investment costs for this new factory in Indonesia would be approximately RM16 million including land acquisition and CONSTRUCTION [] of manufacturing facilities.

“The market for the cold‐drawn steel products in Indonesia has seen considerable growth in the past few years. The setting up of production facilities in Indonesia will enable the group to be closer to its customers and tap the potential of the growing market there,” WZ Steel said.

It said it will finance the land acquisition and construction of its factory with internal funds and bank loans.

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