INDUSTRIAL packager KYM Holdings Bhd, which owns a small property division, plans to bolster the business in a bigger way to create a new significant revenue stream.
KYM executive director Datuk Lim Kheng Yew said the company owns some 28ha of land in Teluk Rubiah, Perak, and it plans to build properties there.
"Property will be a new revenue stream for us to augment our income. We are working on that but haven't signed on anything at the moment," Lim said after its annual general meeting in Kuala Lumpur yesterday.
Lim declined to elaborate when asked if KYM plans to become a full-fledged property developer and said "We will announce our plans in the foreseeable future."
KYM made a windfall when it sold 163.6ha of its land to Brazil's Vale, an iron ore group, for RM101.9 million in June 2009. It has an option to sell another 302.4ha for RM93.8 million and this was completed in February 2010.
As a result, KYM was able to cut its debt to RM50 million from RM180 million.
KYM has also bought an additional 16ha of land in Jelapang, Perak, from Idaman Bina Makmur Sdn Bhd for RM12 million.
The company hopes to participate in Vale's downstream activities in Teluk Rubiah. This could include building properties or being a distributor for Vale.
KYM now makes and sells paper and polypropylene-based packaging products like fertiliser bags and carton packs.
By Business Times
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