EPB Group Bhd, a one-stop food processing and packaging machinery solutions provider, has entered into a sale and purchase agreement with Penang Development Corporation to buy an industrial land at Penang Science Park North.

EPB said the acquisition is for RM22.49 million and is in line with its strategic expansion based on the objective of its initial public offering.

The land is adjacent to EPB’s existing factory and corporate office in Penang.

The acquisition will facilitate the construction of a new factory, corporate office, warehouse, and showroom.

This will enhance its expansion of robotics offerings, production capacity and ability to meet the growing demand for food processing and packaging machinery solutions, EPB said.

EPB has allocated RM13.0 million from its public issue proceeds to fund the deal.

On the other hand, RM10.5 million from its public issue proceeds has been earmarked for the construction of a new factory attached with a corporate office.

The factory will cater to the production of food processing and packaging machinery, such as robotics machines, while the corporate office will provide additional warehousing space and a showroom to showcase EPB’s product offerings.

EPB managing director Yeoh Chee Min said the acquisition represents an important step in its growth journey.

“It is fully aligned with our long-term strategy to expand our business footprint in Penang, increase production capacity, and deliver more innovative robotics solutions to our clients.”

Liew Meng Hooi, its deputy MD, said by integrating its new corporate office, factory, and warehouse into one location, EzpN is demonstrating a new level of operational efficiency.

“This move will streamline our processes, boost production, and further cement our ability to meet increasing customer demands in the food processing and packaging machinery industry.”

EPB said it remains focused on its expansion plans to capitalise on the anticipated growth in the Malaysian food processing machinery sector.

The sector is projected to grow at a compound annual growth rate of 10.4 per cent from 2024 to 2028 based on the independent market research report in EPB’s listing prospectus.

Source: NST Online