The deal involved the purchase of two parcels of industrial land measuring 6.47 acre and 4 acres each.
The properties are located next to Tashin’s existing factory.
“The Proposed Acquisition represents Tashin’s efforts to increase its production capacity in steel processing of slit coils, steel sheets and steel manufacturing products,” it said in a filing with Bursa Malaysia today.
“With the increase in capacity, the Group believes that this will lead to an increase in both revenue and profitability in future financial years,” it said.
Meanwhile, in a separate statement, CSC Steel said that the company would use proceeds from the disposal for its working capital.
“There was a tenant when CSC Steel bought over the said property in 2016 and due to unavoidable circumstances, the tenant had ceased operation in year 2020,” it said.
“Due to the said Property is presently deemed surplus to its need and is a leasehold land with certain rules that may restrict the usage of the said Property, the Board of CSC Steel is of the view that the Disposal is in the best interest of the Group,” it added.