KUALA LUMPUR (May 12): Kein Hing International Bhd on Thursday announced it has awarded an RM5 million construction contract to a third party main contractor in Vietnam for the proposed construction of a single-storey factory.
Kein Hing’s wholly-owned subsidiary Kein Hing Thai Nguyen (Vietnam) Co Ltd (KHTV), has awarded the job to the contractor for the proposed construction of the factory on a piece of industrial land located at Diem Thuy Industrial Park, Phuc Binh District, in Vietnam.
In a bourse filing, Kein Hing said the proposed construction of the factory with a total built-up of approximately 53,000 square feet will cater for the future expansion plans of the group in Vietnam, particularly the business of metal stamping, precision
machining, assembly of components and fabrication of tools and dies.
Kein Hing noted further that the group’s production and warehouse space are expected to increase by approximately 9% against its current total capacity with the proposed construction.
“The growth in customers’ demand for parts and metal components in Vietnam has created a great opportunity for the group to expand its manufacturing business in Vietnam.
“The proposed construction is strategically situated within the Diem Thuy Industrial Park, Thai Nguyen where business activities have been expanding rapidly in recent years.
“Therefore, the intended use of the factory upon completion of the proposed construction would principally be engaged in the business of metal stamping, precision machining, assembly of components and fabrication of tools and dies mostly for the multinational corporation customers in Vietnam,” it said.
Kein Hing added the construction of the proposed construction is expected to commence in May 2022, and barring any unforeseen circumstances it is expected to be completed by December 2022.
KHTV intends to finance the construction costs of the proposed construction through bank borrowings.
Kein Hing’s shares finished three sen or 2.91% lower at RM1, bringing it a market capitalization of RM108.9 million.