PETALING JAYA: Easy Pack Machinery Sdn Bhd (EP Machinery), a wholly owned subsidiary of food processing and packaging machinery solutions provider EPB Group Bhd, has entered into a sale and purchase agreement with Penang Development Corporation for the acquisition of industrial land at Penang Science Park North.
The acquisition via a cash consideration of RM22.49 million is in line with the group’s strategic expansion based on the objective of its initial public offering (IPO).
The land, measuring about 7.84 acres, is adjacent to EPB’s existing factory and corporate office in Penang. The proposed acquisition will facilitate the construction of a new factory, corporate office, warehouse, and showroom, enhancing EPB’s expansion of robotics offerings, production capacity and ability to meet the growing demand for food processing and packaging machinery solutions.
In accordance with the group’s IPO prospectus dated June 27, 2024, EPB has allocated RM13 million from its public issue proceeds to fund the proposed acquisition. Some RM10.5 million from its public issue proceeds has been earmarked for the construction of a 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.
The proposed acquisition and the subsequent construction are expected to significantly enhance EPB’s production capabilities, allowing the group to expand its product offerings and cater to increasing large-scale customer orders, especially in the event of multiple large-scale projects. The new facilities will further position EPB at the forefront of the industry, integrating robotics technology into its food processing and packaging machinery solutions.
EPB Group managing director Yeoh Chee Min said, “This land acquisition represents an important step in EPB’s 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. The additional space will not only enable us to meet growing demand but will also allow us to showcase our large-scale cutting-edge machinery lines to prospective customers.”
Deputy managing director Liew Meng Hooi said that by integrating their new corporate office, factory, and warehouse into one location, they are 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.”
Construction of the factory and corporate office is expected to be completed by the second half of 2027. These new facilities will provide EPB with the resources to meet future growth and better serve its clients in the food processing and packaging machinery industry.
The group remains focused on its expansion plans to capitalise on the anticipated growth in the Malaysian food processing machinery sector, which is projected to grow at a compound annual growth rate of 10.4% from 2024 to 2028 based on the independent market research report in the prospectus of EPB.
