Kossan buys land in Perak for RM82m

PETALING JAYA: Kossan Rubber Industries Bhd's subsidiary Premium Medical Products Sdn Bhd (PMP) has acquired two pieces of land in Perak measuring in total 824.11 acres for RM82.42 million cash from Perbadanan Kemajuan Negeri Perak (PKNP).
PKNP is a body corporate established under the Perak State Development Corp Enactment 1967.
Both pieces of land will be utilised by the Kossan group for its integrated glove manufacturing expansion.
The proposed acquisition will be funded by internally generated funds.
"The proposed acquisition is intended to accommodate the Kossan group’s expansion in a centralised location over the medium and longer term. Its strategic location with abundant sources of utilities (natural gas, electricity and water) and the availability of local manpower will facilitate the group’s expansion program," Kossan told Bursa Malaysia in its filing.
The exercise is expected to enhance future earnings of the group when the proposed development of the land comes onstream subsequently. It is expected to be completed in the first quarter of 2019.
Kossan closed up 3.69% at RM8.15 with 661,300 shares done.