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Century
Logistics Holdings Berhad (CLHB),
which is en route to the second
Board of the Kuala Lumpur Stock
exchange, plans to further expand
its warehousing and logistics
services.
"We
have identified approximately 1.6
to 2.4 hectares site for further
expansion of our warehouse
business. Two possible locations
have been identified - in Port
Klang and in Johor," said the
deputy managing director of CLHB,
Mohamed Amin Kassim.
Amin
stressed that the trend was
towards supply-chain management,
which gives greater attention on
the development of international
procurement centers, offers the
company to expand its distribution
activities.
“Century
Logistics warehousing facility
handles assembling of washing
machines, refrigerators, mobile
phone and copier machines for
number of key producers,” he
said.
“We
also carry out contract assembly
of certain home electrical
appliances for our customers in
which we help procure components,
assemble and distribute the
finished products to the end
customer in the correct quantity
and packing style to meet their
requests. We even have entered a
strategic partnership deal with
Nestle Products Sdn Bhd and NEC
Malaysia Sdn Bhd to offer our
total logistics solution from
collection of products from any
port, the storage and warehousing
of goods and the delivery of the
products to end customers,"
said Amin.
In
view of the light of the demand,
the group will be investing about
RM3 million from the proceeding of
the listing exercise to acquire
industrial land for the
development of warehouse facility.
CLHB is expected to raise
RM26.46 million from an initial
public offering (IPO) of 14.7
million shares at issue price of
RM1.80 per ordinary share said
Amin.
Currently
Century Logistics has total
warehouse space of 1.33 million
sq.ft of which 633,000 sq.ft is
covered storage while 700,000
sq.ft is open yard.
He
said the rapid growth of the
company Our fast growing logistics
operation, timely complemented by
He
said the ability of the company to
secure haulage permits from the
Entrepreneur Development Ministry
to operate 30 container haulage
prime movers with 210 trailers
would help in the expansion of the
company’s logistics activitoies.
“We
have deployed 20 of our prime
movers with 102 trailers of which
72 are forty footers and 30 twenty
footers,” he added.
An
additional 10 prime movers with 70
trailers will be acquired before
June next year.
The
group expects to utilise RM2.98
million from the proceeds of
listing for the repayment of
certain hire-purchase and leasing
facilities relating to the
purchase of prime movers and
trailers, particularly those that
are of the highest cost of
borrowings.
Century
logistics warehousing facility (sq.ft)
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Covered
area
Open Yard
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Bonded
102,000
370,000
General
294,000
-
Distribution
77,000
330,000
Free
Commercial Zone 42,000
-
Dedicated
118,000
-
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Source
: Management of LCH
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