Last updated on August 23, 2025
KUALA LUMPUR: Pantech Global Bhd’s wholly-owned subsidiary, Pantech Steel Industries Sdn Bhd, has signed a sale and purchase agreement with Uptown Promenade Sdn Bhd to acquire a 1.96-hectare plot in Klang, Selangor, for RM29 million.
In a filing to Bursa Malaysia today, the group said the purchase is part of its plan to expand its Selangor operations with the development of a new factory and corporate headquarters, dubbed Klang Factory 2, targeted for completion by 2028.
The acquisition is expected to be finalised by the fourth quarter of 2025. Once operational, the expanded Selangor facilities will allow Pantech to widen its production range of carbon steel butt weld pipe fittings, offering more variations in pipe size, wall thickness, and material grade.
Pantech also announced a proposed adjustment to the utilisation of the RM38 million raised from its initial public offering (IPO) to finance the acquisition. Under the revised plan, the allocation for land purchase, including ancillary costs, will be reduced from RM35 million to RM30 million, as no land conversion is required for the new site.
The RM5 million savings will be redirected to construction works. Additionally, the RM3 million originally earmarked for building a workers’ hostel will be reassigned to construction, bringing the total construction allocation to RM16 million.
The company noted that these proposals are unlikely to significantly impact its consolidated earnings and earnings per share for the 2026 financial year, but it expects the acquisition to contribute positively to future profits.
