The firm has entered into a Sale and Purchase Agreement to acquire a 188,604.18 square-metre area of land within Techpark@Enstek, Bandar Baru Enstek, from Lembaga Tabung Haji and THP Enstek Development Sdn Bhd for RM86.07m (about US$21.85m).
Lembaga Tabung Haji had appointed THP Enstek Development Sdn Bhd as attorney for the Proposed Land Acquisition.
The price took into consideration the market value of the land of RM41 per square foot, after valuation by an independent valuer.
Plot and usage
“The company intends to develop and construct new manufacturing facilities on the property that is expected to strengthen the efficiency and competency of the company in providing quality products to customers,” said Ajinomoto Bhd, in a filing to Bursa Malaysia.
The area is described as being presently “overgrown with trees and bushes with undulating terrain”.
“At this stage, it is too preliminary to ascertain the total development costs or the commencement of operations of this new manufacturing facilities,” said Ajinomoto Bhd.
The development costs are expected to be funded through internally-generated funds and/or bank borrowings if required, according to the company.
The Proposed Land Acquisition statement said that the property is to be developed as a facility for the manufacturing of the company’s products, together with associated amenities and logistics.
Nonetheless, it will be some time before construction is complete and the expanded operations can help to boost production.
“Barring any unforeseen circumstances, the Proposed Land Acquisition is expected to be completed by 31 July 2019,” said the statement.
Ajinomoto is a Japan-headquartered food and chemical corporation that produces seasonings, cooking oils, sweeteners and amino acids, and other products.
Ajinomoto (M) Bhd was founded in 1961. It is headquartered in Kuala Lumpur, with its factory also there, and has sales offices in eight other states.
Recently, we reported that the Punjab Food Authority (PFA) in Pakistan had banned the sale and use of Ajinomoto salt as its scientific panel claimed MSG was “hazardous to health”.