Techbond to spend US$2.7m to build Vietnam factory

Industrial adhesive manufacturer Techbond Group Bhd, which raised almost RM40 million via its initial public offering last December, will be spending US$2.7 million to build a factory complex in Vietnam for the group’s expansion.

In a filing with Bursa Malaysia, Techbond said its wholly-owned subsidiary Techbond MFG (Vietnam) Co Ltd has signed a construction contract with main contractor Trung Hau Construction Corp for the construction of a factory complex in Vietnam-Singapore Industrial Park in Binh Duong province.

Techbond said the contract is scheduled to be completed by the first quarter of 2020.

The group said the main contractor will hand over the project with a certified construction warranty of 24 months and a warranty guarantee of 5% of total contract value.

Techbond’s share price gained 0.5 sen or 0.73% to close at 69 sen, giving it a market capitalisation of RM158.7 million.

Source: The Edge Markets