The land parcel at Kaki Bukit Avenue 5, on a 33-year lease, is 12,318 sqm big and given the allocated plot ratio, will yield a floor space of 28,594 sqm.
Under terms of the lease, Frencken has to invest at least $19.5 million comprising at least $13.3 million in new plant and machinery. The remainder may consist of the net book value of existing plant and machinery relocated from existing sites.
"The new facility will expand the group’s production resources to support existing and new programs, and strengthen its position to advance with key customers in the coming years," says Frencken.
"Along with improved productivity, the development will also expand the group’s capacity, particularly for larger cleanrooms, to scale up its business portfolio with key wafer fabrication equipment customers," the company says.
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"The group believes Singapore will remain a vital and strategic base for its manufacturing operations and future growth," says Frencken.
Construction will begin in the third quarter of 2025 and is slated for completion by the first quarter of 2027.
Frencken shares closed at $1.14 on June 3.
