GB Bond plans Penang factory to lift adhesive capacity by about 35%
The group has earmarked RM5.5 million for factory rental and machinery, alongside RM3.5 million for a sales office in Vietnam.
GB Bond Holdings Bhd plans to bring its yearly capacity for industrial adhesives to 31,971.3 tonnes, an increase of about 35%, through a new factory in Penang. The facility will be near the group's headquarters in Bukit Panchor.
The adhesive manufacturer has set aside RM5.5 million of its initial public offering (IPO) proceeds for machinery purchases and rental of the approximately 40,000 sq ft premises. It plans to add four machines for mixing and blending, together with two sealant production lines.
Current adhesive capacity utilisation is about 70%, according to Malacca Securities senior vice-president of corporate finance Darren Koh Chong Woi. He said this leaves room to meet demand ahead of the expansion, with demand expected to rise over the next two to three years.
Overseas markets, including Vietnam, are expected to provide some of that demand. GB Bond has allocated RM3.5 million in IPO funds for a Vietnam sales office, which it plans to establish within six months of listing. The group intends to approach both existing and prospective customers, focusing on woodworking, paper and packaging.
Chief financial officer Nicole Eng Pek Yui said the group aims for Vietnam to contribute at least 9% of revenue, with gradual growth dependent on the pace of expansion. Vietnam accounted for 5.36% of revenue for the financial year that ended on Dec 31, 2025, making it the group's second-largest market. Malaysia contributed 90.93%.
