KLSE Screener: PMW to invest RM43.8 mil in Perak plant to more than double production capacity
KUALA LUMPUR (July 15): Infrastructure solutions provider PMW International Bhd (KL:PMW) is investing RM43.76 million in a new spun-pile manufacturing facility in Bemban, Perak, which will more than double the group’s annual production capacity to 718,000 metric tonnes.
In a filing with Bursa Malaysia on Wednesday, PMW said the plant will add 480,000 tonnes of annual capacity to its existing capacity of about 238,000 tonnes. Commercial operations are expected to commence in the third quarter of 2027.
The investment will be funded through bank borrowings and internally generated funds. PMW’s wholly owned subsidiary PMW Winabumi Sdn Bhd has accepted RM54.4 million in Islamic banking facilities from Maybank Islamic Bhd to finance the plant, machinery and working capital requirements.
The facilities comprise RM37 million for construction and machinery, RM2 million in revolving credit and RM15.5 million in trade financing.
Assuming the facilities are fully utilised, PMW’s gearing ratio is expected to rise to 0.52 times from 0.27 times, while additional annual interest and finance costs are estimated at RM2.7 million. This would reduce earnings per share by about 0.30 sen.
Separately, PMW Winabumi awarded a RM14.2 million fixed-price contract to ECJ Construction Sdn Bhd to construct the facility’s production area and ancillary building.
The contract value, which includes 6% sales and service tax, represents only part of the plant’s total estimated cost. Construction started on Wednesday, with the production targeted for completion by Feb 14, 2027, and the ancillary building by March 14, 2027.
The facility will be built on about 12 acres of industrial land at Kawasan Perindustrian Bemban. The land is owned by PMW’s wholly-owned subsidiary Kumpulan Asma Sdn Bhd and is currently used as an open storage area.
PMW said the new facility will be its fifth factory in Ipoh and will support demand from infrastructure and engineering projects across northern and central Peninsular Malaysia.
Executive director and CEO Lee Hon Hwa said in a statement the expanded capacity would allow PMW to better serve customers in the transportation, utilities, telecommunications and industrial sectors.
“The Bemban Facility will more than double our production capacity and operational flexibility,” he said in a statement.
The group said demand for foundation products is expected to be supported by investments in highways, electricity grid upgrades, water infrastructure, industrial parks, data centres and telecommunications networks.
PMW is also developing a manufacturing facility in Tanjung Manis, Sarawak. It recently secured an RM11.92 million spun-pile supply order for an infrastructure project in Perak and an RM11.84 million supply agreement for the Point of Presence Phase 2 infrastructure project.
PMW’s shares were down 2% to 24.5 sen a share, valuing the company at RM218.55 million. The stock is down 27.54% from a year ago.