KUALA LUMPUR (July 30): Leon Fuat Bhd is acquiring a leasehold industrial land in Port Klang for RM20.43 million to expand its welded steel pipe manufacturing activities.

The 27,108 square metre-land is located less than 500 metres from the group’s existing welded steel pipe manufacturing plant in Kawasan Perusahaan Bandar Suleiman, the steel specialist said in a bourse filing.

“The proposed acquisition is timely to facilitate the future expansion of the group’s manufacturing capacity,” said Leon Fuat.

The land, currently owned by Irama Utama Sdn Bhd, will be used as additional storage space for steel pipe finished products, the group said.

Leon Fuat said the prospects of the land is good, as it is almost square in shape, situated within a strategic industrial zone with ready basic infrastructures.

The group intends to fund the purchase, which is expected to be completed in the fourth quarter, via internally-generated funds and borrowings.

Leon Fuat’s share price closed one sen or 1.09% higher at 92.5 sen today, valuing the group at RM312.01 million.