BUSINESS

KOMARKCORP TO EXPAND FACE MASKS PRODUCTION CAPACITY FROM PROPOSED PRIVATE PLACEMENT PROCEEDS

12/04/2021 10:25 PM

KUALA LUMPUR, April 12  -- Komarkcorp Bhd intends to raise about RM23.07 million from a proposed private placement exercise to expand production capacity for its face masks manufacturing business. 

The group, via its filing with Bursa Malaysia today, said the proposed private placement includes up to 96,223,000 new ordinary shares, representing 20 per cent of the existing total number of issued shares to independent third-party investor(s) to be identified and at an issue price to be determined later.

“We intend to expand our production capacity further by purchasing additional machinery to set up another 75 production lines for three-ply face masks and 10 production lines for KN95 face masks over the next 18 months.

“Upon completion of the expansion, the group would have a total of 100 production lines for three-ply face masks and 15 production lines for KN95 face masks,” it said.

The company, which is involved in printing of label and packaging solution said the need for medical face masks due to the COVID-19 pandemic has increased stockpiling, especially in countries that are severely affected.

“For instance, infection rates in the countries/regions where Komarkcorp Group targets to export its medical face masks to, such as India, the United States, Africa, Europe and South America, are rising at an alarming rate,” it said.

Komarkcorp's current face masks manufacturing operations are housed in its existing factory cum headquarters in Balakong, Selangor, which has a built-up area of 1.39 hectares, out of which approximately 0.46 hectares had been allocated for the purpose.

Since the allocated space is only capable of housing up to 50 face masks production lines, the group is looking to acquire a factory close by to centralise its supply chain as much as possible.

The company diversified its business in 2020 to include manufacturing and sale of face masks after obtaining shareholders’ approval in August the same year and raising proceeds of RM59.21 million for the establishment of up to 30 production lines for the purpose. 

-- BERNAMA

 

 

 

 


 


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