KUALA LUMPUR (Nov 4): BHS Industries Bhd plans to diversify its business to include the construction, development and management of Green Technology Park Pekan (GTP Pekan) and other construction and property development activities.

In the filing with Bursa Malaysia today, BHS said the proposed diversification will reduce its risk of dependency on its existing printing business. It noted that its printing business has been facing a slide in profitability due to the lower print orders received.

The Pahang state government had on Oct 21 granted BHS' wholly-owned subsidiary Ultimate Ivory Sdn Bhd approval for 375 acres of land in Pekan, Pahang for the development of GTP Pekan.

The park will comprise integrated pulp and paper mills, feed mill, fertiliser plant, light industries, wetlands, recreation lake, commercial area, residential area for workers, education and research hub. The development of the project will be divided into five phases.

"The GTP Pekan project will represent BHS Group's maiden foray into the construction, development and management of a green technology park and other construction and property development activities," said BHS.

On Nov 1, BHS had entered into a memorandum of agreement with China Nuclear Industry Huaxing Construction Co Ltd to jointly develop and manage Phase 2 and Phase 3 of GTP Pekan and other ancillary buildings/facilities.

Barring any unforeseen circumstances, the entire GTP Pekan project is expected to be completed by 2020, said BHS, adding that it will fund the project via a combination of internal funds and/or borrowings, the composition of which will be determined at a later stage.

BHS expects the proposed diversification to contribute positively to the group's earnings and earnings per share for the financial year ending June 30, 2017 and onwards if and when the GTP Pekan project is successfully developed.

BHS shares closed up 0.5 sen or 1.16% at 43.5 sen today, giving it a market capitalisation of RM187.68 million.