Muhibbah Engineering buying land in Kuantan to build maritime hub

PETALING JAYA: Muhibbah Engineering (M) Bhd (MEB) is acquiring 500 acres of land in Kuantan, Pahang, for RM26.45 million cash, to expand its maritime and fabrication capacity.
In a filing with Bursa Malaysia on Monday, the company said it entered into an agreement on June 4 with Perbadanan Setiausaha Kerajaan Pahang for the land purchase.
It said the proposed acquisition will provide an opportunity for the MEB group to develop industrial activities for shipbuilding and ship repairs as well as major fabrication offshore structure.
“This will enlarge the group’s maritime and fabrication capacity to cater for future business growth in the defence, commercial and fabrication sectors. It is expected to enhance the future performance of MEB Group.”
MEB said the land is intended for the development of a maritime hub to be known as Kuantan Maritime Hub over 10 years. The proposed acquisition will be financed with internal funds.
MEB is involved in infrastructure and building works, marine and port construction, fabrication works, cranes, airport and airline support facilities, oil and gas, shipbuilding and concessions. It has an offshore fabrication yard in Klang.
Its share price rose 1 sen to RM2.26 on Monday with 360,300 units traded.