Samchem Holdings Bhd is leasing industrial land in Johor Bahru for RM21.08 million to develop a bulk liquid storage terminal as part of its expansion plans.
In a filing with Bursa Malaysia, the integrated chemicals and lubricants distributor said its wholly-owned unit SC Terminals Sdn Bhd signed a lease agreement with Idemitsu Chemicals (M) Sdn Bhd for a 439,092 sq ft parcel in Plentong.
The lease will run until May 29, 2051, with an option for extension.
Samchem said the new facility will increase its storage capacity for internal use and rental to customers, while improving its ability to handle a wider range and larger volume of liquid chemicals.
The terminal will also allow the group to carry out bulk-breaking activities, which involve repackaging chemicals from bulk quantities into smaller volumes.
The company said the project is expected to strengthen its competitive position and move the business further up the value chain.
Samchem currently operates chemical storage, warehousing and logistics facilities across Malaysia, Vietnam, Indonesia and Singapore.
