KUALA LUMPUR: B.I.G. Industries Bhd has ceased its concrete business operated by three of its wholly owned subsidiaries, namely Uni-Mix Sdn Bhd (UMIX), Uni-Mix Concrete Products Sdn Bhd and Kinalaju Supply Sdn Bhd on July 16, 2024.
However, UMIX's property development business will continue as usual, said the Sarawak-based company which manufactures, distributes, and markets ready-mixed concrete, cement products, and industrial gases.
In a filing with Bursa Malaysia today, B.I.G. Industries said the concrete division has been operating in a very competitive environment and the decision on the closure is inevitable based on the historical financial performance and weak business outlook.
"The concrete division has been loss making as it operates in a very competitive price sensitive business environment served by operators like ourselves and contractors who have their own on-site batching plants and casting yards at their job sites.
"The financial losses over the years were a result of low demand or volume below our breakeven, and the lack of construction related activities in the area we operate," it said.
The group said for the past two financial years ended June 30, 2022 and June 30, 2023 respectively, the concrete division recorded a pre-tax loss of RM660,658 and RM157,619 respectively, and an unaudited pre-tax loss of RM446,599 for the nine-month period ended March 31, 2024
It said the cessation of business has no material financial impact to the financial year ended June 30 , 2024.