DXN Holdings Bhd has entered into a 60-year land lease agreement valued at RM27.83 million with Perbadanan Kemajuan Negeri Kedah to develop a new manufacturing facility in Bukit Kayu Hitam.
In a filing with Bursa Malaysia, the group said its wholly owned subsidiary, DXN Industries (M) Sdn Bhd, signed the agreement on April 8. The lease involves five parcels of industrial land with a total area of approximately 1.16 million square feet (10.77 hectares).
The lease tenure runs for 60 years from the date of the agreement, and will be funded through a combination of internally generated funds and bank borrowings.
DXN said its existing manufacturing facilities in Jitra, Kedah are nearing full capacity due to sustained demand, resulting in operational bottlenecks that limit further expansion.
The new facility in Bukit Kayu Hitam is intended to address these constraints and support the group’s next phase of growth. While located in a different township, the facility will function as an integrated extension of its existing operations in Jitra.
The group noted that the expansion will allow it to increase production capacity while maintaining centralised control over manufacturing standards and operational efficiency.
In addition, the new facility is expected to enhance operational resilience and support business continuity planning by providing greater flexibility and additional manufacturing capacity.
With more than 30 years of presence in Kedah, DXN said the project underscores its continued commitment to the state while strengthening its long-term growth and operational footprint.
