THE industrial sector in Seberang Prai is building pace with several factory projects underway ― reflecting an active market in mainland Penang.
Henry Butcher Malaysia’s SeberangPrai mid-year review stated that the volume of transactions had increased marginally by nearly three per cent, from 67 transactions in the first quarter of last year (Q1 2017), to 69 in the first quarter of this year (Q1 2018).
But the total value of transactions surged 53.85 per cent year-on-year, from RM80.8 million to RM124.3 million.
Central Seberang Prai continued to lead the growth by making up 64 per cent of the transaction volume, followed by South Seberang Prai (20 per cent) and North Seberang Prai (16 per cent).
Major transactions included a 1.26ha factory in Taman Industri Bukit Panchor, Nibong Tebal, that sold for RM10 million.
There were two semi-detached factories with a land size of 743 to 929 sq m that sold for nearly RM6 million at the Sungai Lokan light industrial zone in Bagan Lallang, Butterworth.
Meanwhile, a parcel of freehold industrial land measuring 4.31ha at Valdor Industrial Estate in Sungai Bakap had been sold for RM20 million (RM43 per sq ft), the firm said.
“Prices of SME factories in the secondary market are stable and in the upward trend.
A 1.5-storey terrace factory at Sungai Lokan light industrial zone with a land size of 178 sqm was transacted at RM650,000 and remains firm comparedto transaction pricesin 2017,” the firm added.
In Taman Bunga Raya Merahat Raja Uda, a terraced factory with land size of 225 sq m recorded the highest transacted price at RM1.1 million.
Among the companies ramping up their businesses in Seberang Prai is Eonmetall Group Bhd, which is investing more than RM100 million this year and next in steel racking, and the machinery and equipment (M&E) business.
The company, based in Valdor Industrial Estate, will be channelling about 70 per cent of the budget to build 10 palm oil solvent extraction plants for a government-linked company.
Nibong Tebal Paper Mill Holdings Bhd, the manufacturer of Premier tissues, is investing RM50 million to expand its manufacturing facilities in Vietnam and Penang this year.
It wants to increase its production capacity to 170,000 tonnes from the existing 110,000 tonnes.
Manufacturer and steel product trader Tatt Giap Group Bhd plans to develop a 4.85ha light industrial project worth RM140 million in Valdor Industrial Estate.
This development included 38 units of three-storey semi-detached SME factories and two three-storey detached corporate warehouse cum office buildings.
JLL Malaysia Sdn Bhd will also be investing RM70million in Penang over the next two years. This investment includes the acquisition of a 1.6ha plot of industrial land at Penang Science Park to build a factory to produce medical devices. The factory is expected to begin operations in early 2020.
Astino Bhd’s new plant in Jawi is expected to be ready by the end of the year. Worth RM60 million, it aims to tap the growing market for construction materials.
Golden Gates is an upcoming SME Industrial Park by Golden Land Bhd in Batu Kawan.
This 8.3ha freehold development comprises a mix of light and medium industrial units, which includes three-storey semidetached and detached factories selling for RM2.8 million onwards.
Wisdom Tech Avenue is a light industrial project by WSH Development Sdn Bhd in Valdor Industrial Estate.
It comprises three-storey semi-detached SME factories with land sizes ranging from 1,027 sqm onwards, with prices of RM5.64 million and above.
The Park is a new SME project by Sincer Sunrich Sdn Bhd at Sungai Baong, South Seberang Prai. It comprises 34 units of double-storey, semi-detached factories with land sizes from 780 sq m onwards, and three units of double-storey detached factories with land sizes of 1,227 to 2,120 sq m.