KUALA LUMPUR (July 30): Automated test solutions firm THMY Holdings Bhd (KL:THMY) has expanded the plan for its new factory, with construction of the upsized project now expected to cost five times more at RM172.6 million.
The move for the larger-than-planned factory follows enquiries THMY received from its customers for advanced automated test solutions and system-level automated test solutions, the group said in a filing on Thursday.
The initial plan for the new factory pegged a construction cost of RM29.35 million, according to THMY’s initial public offering (IPO) prospectus. It earlier earmarked RM22.9 million from its IPO proceeds for the factory.
The remainder will be covered by internally generated funds, bank borrowings and/or a future equity fundraising exercise. Construction of the larger factory is not subject to shareholders’ approval, it said.
The expanded project involves a five-storey office building with a three-storey factory and warehouse with a more than threefold increase in the initially planned built-up area and enhanced specifications.
“The increased demand from these customers [mainly driven by continued investments in the technology, media and telecommunications (TMT) industry, including networking and broader electronic and electrical (E&E) industries] has resulted in higher capacity requirements,” THMY said.
Enhancements required to support manufacturing of these advanced solutions include higher mechanical and engineering (M&E) specifications, it noted.
This comprises a Class 10,000 cleanroom, upgraded power supply, increased floor loading capacity, larger air-conditioning system, as well as additional structural requirements and related engineering works.
THMY noted the figure excludes certain fit-out works, additional M&E installations and ancillary works, as their actual scope and costs cannot be determined at this juncture.
Aside from the additional M&E requirements, THMY attributed the higher overall construction costs to higher construction material and labour costs.
The new factory is planned to have a built-up area of 300,800 sq ft (222,000 sq ft being production area) compared to the initially planned 88,000 sq ft (70,000 sq ft being production area).
The factory is to be constructed on the same site of the initial plan, which is within close proximity to the group’s current factory in Batu Kawan.
Site clearance for the construction has commenced, and construction of the factory is expected to be completed by the second quarter of 2028, THMY noted.
Shares of THMY ended two sen or 1.14% higher at RM1.78, valuing the group at RM1.58 billion. Against its listing price of 31 sen on Oct 23, 2025, the counter is up over fivefold.