Permaju Industries Bhd, which said recently that it is venturing into the glove business is making positive headlines again.
The company is believed to have won a construction contract worth about RM1.2 billion to undertake a massive property development project in Selangor.
This was reported by the New Straits Times (NST) today.
The NST, quoting sources in the construction industry said the contract was awarded by a developer who has a big plot of land in the Seri Kembangan/Serdang area.
The contract is to build more than 7,000 units of apartments over six to seven years.
This looks like a massive undertaking and it will keep Permaju busy for the next 7 years.
The tallest tower in the development is said to be over 50 floors and making it the tallest structure in the Seri Kembangan/Serdang area.
This news is expected to boost the housing market in the area as this development by Permaju may also set a new benchmark in price.
Permaju will undertake the contract on a design and build structure and the whole project will generate about RM2.4 billion in gross development value. Wow! RM2.4 billion is a huge amount. There is no indication whether the project will also feature retail and commercial.
According to the NST article, the project was given approval last year but the developer is only starting now after the government announced the RM35 billion Penjana plan to stimulate the economy.
Permaju is involved in the trading of motor vehicles, timber plantation, construction, and property development.
The stock has been trading actively lately. The shares rose today to as high as 33.5 sen from a low of 24.5 sen two weeks ago.
Permaju has announced a rights issue to raise cash for expansion.
This could be for the recent deals it announced recently, as well as to build its glove venture.
On April 7, Permaju said it is looking into bottling and distributing Penaclo, a Hong Kong firm’s sanitiser product, for the Southeast Asian market amid the Covid-19 pandemic.
About three weeks later Permaju inked a memorandum of understanding with a local firm to sell the company's air purification products to its customers in the automotive sector, citing exponential demand growth for the product.
Last month Permaju told Bursa Malaysia that it has incorporated a company named Permaju Glove Sdn Bhd (PGSB) to venture into the glove manufacturing business.
The intended principal activity of PGSB is to manufacture, distribute, buy, sell and generally deal in rubber goods for industrial and commercial purposes and other related goods, wares and merchandise of every nature and description, it said.