Lay Hong Bhd will invest RM16.6 million for a new pasteurised liquid eggs processing facility in Iskandar Halal Park, Pasir Gudang, Johor to cater the needs of the southern region and Singapore market as well as addressing logistics costs.
The group told the stock exchange that the investment will include the purchase of a semi detached factory from Tentu Teguh Sdn Bhd for RM5.2 million. The project is expected to be completed within six to seven months upon delivery of certificates of fitness from the developer.
The investment cost will be financed through a combination of internally generated funds and bank borrowings.
Lay Hong said the new facility is also in line with the group’s focus on enhancing the sales of downstream products.
Its share price gained one sen or 1.05% to close at 96 sen with 4.97 million shares done.