KUALA LUMPUR: Techbond Group Bhd says its expansion plans are progressing well.
Techbond, a self-proclained homegrown pioneer of industrial adhesives and sealants, said the construction of its new factory complex in Binh Duong Province, Vietnam which started in May 2019, was on track for completion by March this year.
Managing director Lee Seng Thye said the expansion progress could improve group bottom-line.
“We believe moving upstream to produce our own raw materials for our adhesives (i.e. the polymerisation plant) is the right strategic move for us as we grow our business.
“In turn, this could potentially improve our bottom-line. Our decision to expand in Vietnam is supported by our sales data as well as the strong potential growth in the country,” Lee said after its extraordinary general meeting (EGM) today.
He said Techbond had recently adopted a formal dividend policy of distributing up to 30 per cent of its net profit.
“This is part of our efforts to continue rewarding our loyal shareholders. All in all, we remain positive on the group’s prospects going forward,” he added.
Meanwhile, the proposed issuance of up to 115 million free warrants on the basis of one warrant for every two existing shares in the company held on an entitlement date to be determined and announced later, has been unanimously passed by its shareholders at the EGM.
The proposed issuance is expected to be completed by the first quarter of 2020.