KUALA LUMPUR (Oct 22): BWYS Group Bhd (KL:BWYS), which is involved in the manufacturing of sheet metal products and supply of scaffoldings, is acquiring a parcel of freehold industrial land in Kuala Langat, Selangor, for RM94.5 million.

BWYS said its wholly owned subsidiary BW Scaffold Industries Sdn Bhd entered into a sale and purchase agreement (SPA) with Compass IP Sdn Bhd for the acquisition of the land measuring 28.92 acres on Oct 22.

The land is located within the Compass @ Kota Seri Langat industrial and logistics hub in Mukim Tanjung Dua Belas, Banting, Kuala Langat. The industrial park is located approximately 60km southwest of Kuala Lumpur and 37km northwest of Klang town.

The purpose of the acquisition is for BW Scaffold’s future operational expansion, said BWYS in the filing, as the land is larger than the existing property that the company is currently operating at.

“Coming shortly after our joint venture with Runwin International (HK) Holding Group Co Ltd to establish a state-of-the-art colour-coated steel coil production line, we are pleased to have secured this new site in Banting, which will enable the group to consolidate its manufacturing and warehousing operations within a modern industrial hub,” said its managing director Kang Beng Hai in a statement.

“The group intends to construct a new factory on the land, which will consist of factory buildings, warehouses and centralised labour quarters, and is expected to increase the operational capacity of the group,” said BWYS.

The new factory is intended to cater to BW Scaffold’s operations for the rental and supply of scaffoldings, and manufacturing sheet metal products, such as polyurethane foam sandwich panels, roofing sheets and roof trusses, as well as storage for the group’s steel materials. 

The construction of the new factory is expected to commence in the second quarter of 2026, said BWYS.

The group added that the acquisition of the land as well as the construction of the new factory is expected to generate savings over time by eliminating rental payments for the factory that BW Scaffold is currently operating at, amounting to approximately RM2.66 million per year.

BWYS will use RM20 million of the proceeds from the disposal of its Bukit Changgang land to fund this purchase, while the rest will be raised via borrowings.

In August, BWYS had entered into an SPA with Yusin Machinery (Malaysia) Sdn Bhd for the disposal of a parcel of leasehold industrial land with three blocks of four-storey office buildings, three blocks of single-storey detached factory buildings and an ancillary building located in Pekan Bukit Changgang, Olak Lempit, Kuala Langat for a cash consideration of RM67 million.

BWYS shares ended unchanged at 23.5 sen on Wednesday, giving the group a market capitalisation of RM240.93 million.