KUALA LUMPUR (April 13): DXN Holdings Bhd (KL:DXN) has entered into a 60-year industrial land lease for a 26.6-acre parcel in Bukit Kayu Hitam, Kedah to expand its production capacity.

The lease was signed between its wholly-owned subsidiary DXN Industries (M) Sdn Bhd and Perbadanan Kemajuan Negeri Kedah (PKNK). In a filing with Bursa Malaysia, the group said the lease, valued at RM27.8 million, will be funded via internally generated funds and/or bank borrowings.

This parcel represents DXN’s largest land secured for production facilities to date, it said. The site has been earmarked for the development of a new manufacturing facility, which is expected to significantly expand the group’s production capacity in Kedah and support growing demand across its international markets.

According to DXN, it currently operates two manufacturing facilities in Jitra, Kedah, which are nearing full capacity amid sustained demand, resulting in operational bottlenecks that limit further expansion.

In a statement, DXN founder and executive chairman Datuk Lim Siow Jin said the group’s continued expansion across international markets requires its manufacturing capabilities “to scale in a disciplined and coordinated manner”. He added that the new facility will strengthen its global supply chain by enhancing production capacity, ensuring supply consistency and improving coordination across its vertically integrated operations worldwide.

“This development also adds momentum to DXN’s broader multi-region manufacturing rollout, following the recent operationalisation of new plants in Nepal and Bangladesh, which are already contributing to the group’s global output. This network will be further strengthened by several projects currently under development, including new overseas manufacturing facilities in Bolivia, Peru, and Morocco, as well as a new domestic manufacturing facility in Kelantan, Malaysia, all of which are slated for completion in 2027,” he added.

The lease consideration was determined at RM24 per sq ft on an “as is, where is” basis, as set by PKNK, reflecting the land’s location. The valuation was supported by an independent assessment by Jasaland Property Consultants (K) Sdn Bhd, which estimated the market value at approximately RM27.8 million using the comparison method, according to DXN.

The lease agreement follows a memorandum of understanding signed between DXN and Invest Kedah Bhd in July last year, which laid the groundwork for DXN’s expansion in Kedah.

DXN is involved in the sale of health-oriented consumer products, including fortified food and beverages, dietary supplements, and personal care and cosmetic products. Latin America and Asia remain its core markets, contributing about 80% of revenue for the financial year ended Dec 31, 2025.

Shares of DXN rose half a sen or 1.08% to close at 47 sen on Monday, giving it a market capitalisation of RM2.32 billion.