- ML Global’s wholly-owned subsidiary Vintage Tiles Industries (VTI) will cease manufacturing and trading of roof tiles (manufacturing division) effective 15 July, amidst increasingly challenging operating conditions.
- Based on the FY15 and 1Q16 financial results, the manufacturing division has incurred an accumulated loss of RM17.2 million and RM208,000 respectively.
- The board is of the view that the cessation is expected to reduce losses and improve the overall cash flow of the group through the rental income received from the tenancy agreement for VTI’s existing factory.
Significance: Moving forward, ML Global will focus on the construction business, which is expected to generate sustainable income revenue and profit for the group in the future. Disposal of all manufacturing machinery and equipment of the manufacturing division is also expected to done at a later stage.