KUALA LUMPUR (Aug 5): CPE Technology Bhd (KL:CPETECH), a Johor-based precision-machined parts maker, announced its plan to purchase 0.99 acres of land with a factory building in Ulu Tiram, Johor, and RM21 million worth of machinery as it looks to expand its production capacity.

The company acquired the Ulu Tiram property from fridge manufacturer Flomatic Industries Sdn Bhd for RM10 million while 70 units of turning and milling machinery were acquired from Yamazen (M) Sdn Bhd and Numac Machinery Sdn Bhd for RM21.02 million, according to bourse filings.

Both acquisitions are being undertaken by CPE Tech’s wholly-owned unit Champion Precision Technology Sdn Bhd.

The land acquisition, CPE Tech said, is in line with the company’s long-term strategy to strengthen its manufacturing and industrial capabilities, as well as expand production capacity.

The additional space is within the vicinity of its existing facilities and provides the company the opportunity to set up additional manufacturing lines in the near future, it added.

The company said the machinery purchase, meanwhile, enables the company to meet current and expected demand for future business expansion and operational efficiency. It will improve production capacity and machining accuracy, it said. 

It anticipates completing both acquisitions by the second quarter of 2027.

Shareholding of Flomatic Industries was not disclosed, but its directors comprised Tan Hua Shin, Han Ah Yang, Tan Hua Feng (Chen Huahong), Tan Hua Han and Tan Tow Chow, according to CPE Tech.

Of the vendors of the machinery, Yamazen is a specialised machine tools and equipment provider while Numac is an industrial machinery and equipment provider. Shareholding details were not disclosed.

Shares of CPE Tech ended three sen or 2.73% lower at RM1.07, valuing the company at RM718.31 million.