Luster Industries diversifies into property development, construction business

PETALING JAYA: Plastic injection and moulding company Luster Industries Bhd has proposed to diversify into property development and construction segments to reduce the group's dependence on its core existing business.
The group is currently involved in the manufacturing of precision plastic parts and components and sub-assembly of plastic parts and products. It is also engaged in precision engineering works and manufacturing of die-casting components.
Luster told the stock exchange that the proposed diversification is expected to contribute positively to its earnings for the financial year ending Dec 31, 2018 and beyond, with a positive impact on the group's net assets.
However, the group said its gearing may increase in the event it obtains additional external borrowings to finance the proposed diversification.
Last November, Luster entered into a joint venture agreement Enrich Realty Sdn Bhd to develop a piece of land in Hulu Langat, Selangor, measuring 3.6725ha into commercial or residential or mixed project, including "Rumah Selangorku".
In May 2017, the group also announced that its unit Luster Manufacturing had entered into project financing, management and construction agreement with GDW Mengkuang Sdn Bhd for the development of a land measuring 225.17 acres in Penang.