PETALING JAYA: Mycron Steel Bhd

has announced that its wholly-owned subsidiary, MeleMewar Steel Tube Sdn Bhd (MST), is acquiring a parcel of leasehold industrial land together with the buildings erected thereon, in Shah Alam, Selangor, from Melewar Industrial Group Bhd

(MIGB) for RM30mil.

In a filing with Bursa Malaysia, Mycron said MST is a 74.13%-owned subsidiary of MIGB.

“The corporate office and factory of MST are currently located on the property and are rented from MIGB at a monthly rental of RM175,000.

“The proposed acquisition will allow MST to occupy its own premises, resulting in operational cost savings arising from rental expenses amounting to approximately RM2.1mil per annum,” it said. The acquisition will eliminate its exposure to potential rental increases upon expiry.