EPB Group Berhad (“EPB”), and its group of companies (the “Group”), an established one-stop food processing and packaging machinery solutions provider, is pleased to announce that its wholly-owned subsidiary, Easy Pack Machinery Sdn. Bhd. (“EP Machinery”) has entered into a sale and purchase agreement with Penang Development Corporation (“PDC”) for the acquisition of industrial land located at Plot P23B, Penang Science Park North (“Land”) (“Proposed Acquisition”).
The acquisition is for a total cash consideration of RM22.49 million and is in line with the Group’s strategic expansion based on the objective of its initial public offering.
The Land, measuring approximately 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 prospectus dated 27 June 2024, EPB has allocated RM13.0 million from its public issue proceeds to fund the Proposed Acquisition. 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.
The Proposed Acquisition and 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.
Mr. Yeoh Chee Min, Managing Director of EPB Group Berhad commented,
“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.”
Mr. Liew Meng Hooi, Deputy Managing Director of EPB Group Berhad commented,
“By integrating our new corporate office, factory, and warehouse into one location, we 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.”
The construction of the new factory and corporate office is expected to complete 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 (CAGR) of 10.4% from 2024 to 2028 based on the Independent Market Research Report in the prospectus of EPB dated 27 June 2024.
About EPB Group Berhad and its group of companies (“EPB Group”)
Since EPB Group Berhad (“EPB”) and its group of companies (the “Group”) inception in 1992, EPB Group has established itself as an experienced player in the food processing and packaging machinery industry in Malaysia.
Starting with trading manual packaging machines, EPB Group has grown and diversified its offerings to include comprehensive solutions such as the design, customisation, fabrication, integration, and automation of production lines specifically for the food manufacturing and processing sectors.
Additionally, EPB Group has expanded into trading of cellulose casings and manufacturing and trading of flexible packaging materials, enhancing its portfolio to cater to the dynamic needs of the food industry.
Known for its dedication to innovation, customer-centric solutions, and operational excellence, EPB Group continues to strengthen its position in the market, driven by a commitment to advancing food processing and packaging technologies and expanding its presence both locally and regionally.
For more information, visit https://epb.group/
