KUALA LUMPUR (Feb 6): Precision components manufacturer Notion VTec Bhd (KL:NOTION) said it is acquiring a four-hectare vacant freehold agricultural land in Kapar, Klang, for RM29.62 million, as part of the expansion of its manufacturing operations.

The expansion plans include the construction of a large new factory to accommodate growing production needs, Notion VTec said in a filing with Bursa Malaysia on Thursday.

"The board believes that the proposed acquisition will augur well for the group’s expansion needs, which in turn enable the group to potentially enhance its income in the long term," it said.

The company said the land's strategic location near its existing extrusion plant provides a natural extension for future development.

It added that the acquisition of the land from Ng Soon Hing Dan Anak-Anak Sdn Bhd will be financed through a combination of internal funds and bank borrowings.

Shares of Notion VTec closed up one sen or 0.86% at RM1.17 on Thursday with a market capitalisation of RM615.17 million.