KUALA LUMPUR (Dec 22): Malaysian Pacific Industries Bhd (MPI) has entered into an agreement to invest in land for its new plant in Suzhou, China.
Under the agreement, the company will acquire a 66,667-sq-m (16.47-acre) land with a usage term of 50 years at a cost of around 22.4 million yuan (RM14.81 million) to build its new plant.
The group also said that the agreement was signed between its wholly-owned subsidiary Carsem Holdings (HK) Ltd (CHK) and Suzhou Industrial Park Suxiang Cooperation Zone Management Committee (SXIP), a bourse filing showed.
According to the filing, CHK is proposing to incorporate a new wholly-owned subsidiary in China to undertake the investment and construction of the plant to design and provide assembly and test services for semiconductor and electronic components.
The new subsidiary will be represented by MPI’s group managing director Manuel Zarauza Brandulas.
MPI added that upon signing the agreement, SXIP will commence land acquisition procedures in the Suxiang Cooperation Zone for MPI to purchase the land.
Shares of MPI were 10 sen or 0.21% lower at RM47.90 on Wednesday, giving it a market capitalisation of RM10.05 billion.