MBM Resources on expansion drive

06 July 2011 , By Business Times

MBM Resources Bhd plans to build several showrooms and service centres in Johor Baru, Perak and Penang by 2015 to expand its automotive business.

“The plans (for Johor Baru) are being finalised, so it’s just a matter of time when we will start construction,” managing director Looi Kok Loon said at the groundbreaking ceremony of Menara MBM Resources Bhd here yesterday.

The Johor Baru project will be completed in the next 12 months and will be similar to the company’s showroom in Glenmarie, Shah Alam.

“What we are trying to do is build auto villages for all the brands that we have, so that we can provide comfort to customers. Like in Glenmarie, we have the Volvo and Volkswagen showrooms together,” Looi said.

The company is still scouting for locations in Perak and Penang.

He added that MBM Resources aspires to have its own vehicle assembly plant to expand. However, he declined to comment on the details.

MBM Resources has allocated RM250 million for its five-year capital expenditure (capex) plan where 30 per cent of it will be spent on building showrooms and service centres while the rest will be used to build a manufacturing plant.

Currently, the group is building its new 24-storey office tower on a 0.49 ha site, next to Mid Valley City with a gross development value of RM240 million.

The project is part of the group’s strategic move to realise the value of its prime assets.

It is the only freehold, Green Building Index (GBI)-certified Grade A office building in the vicinity of Mid Valley City. It is due for completion in the third quarter of 2014.

MBM Resources has been synonymous with the Daihatsu brand and has now evolved into a diverse automotive group, representing international brands such as Hino, Perodua, Volvo, Volkswagen and Mitsubishi.