Ideal Jacobs steps up expansion in China

By Nadya Ngui

KUALA LUMPUR: Ideal Jacobs (M) Corporation Bhd's
China unit has bought a piece of 9,342.7 sq meters of leasehold land in
Xiamen, China for 2.6mil renminbi (RM1.3mil) to construct a production
plant.
Due to the 80% capacity in its current factory, the label
manufacturer said on Monday the exercise would complement the company's
rapid growth pace.
"Ideal Jacobs Xiamen's (IJX) existing
production capacity will be fully utilized in the near future, probably
in next two to three years, therefore proposing to relocate IJX's
existing production facilities to a larger facility within three years,"
it said.
Ideal Jacobs said the new plant was expected to
complete in two years, with the first phase targeted to complete in a
year's time.
The total costs would be 19.6mil renminbi, with land
cost at 2.6mil renminbi and stage one of the plant at 17mil renminbi
(RM8.36mil).
The firm said 3.0mil renminbi (RM1.48mil) would be
funded internally while 7.6mil renminbi (RM3.74mil) would be from bank
borrowings, 9.1mil renminbi (RM4.48mil) will be sourced from the sale of
existing premises.
It added its earnings per share were expected to be higher in line with its expansion.