|
The
Directors of AnnAik Limited (the "Company") wish to announce that the
Company has formed a joint venture with five business partners from Taiwan to manufacture stainless steel flanges in Jiangyan
city, Jiangsu Province, PRC for sale in China and overseas markets.
AnnAik will hold 51% equity stake in the joint venture company, Shinsei Company
(S) Pte Ltd whilst the Taiwanese partners will hold the balance 49% stake. The
joint venture company, Shinsei Company (S) Pte Ltd, has incorporated a
wholly-owned subsidiary, Shinsei (Jiangyan) Steel Flanges Co. Ltd
("Shinsei Jiangyan") in the city of Jiangyan to undertake the
manufacturing activity of the stainless steel flanges.
AnnAik and its Taiwanese
partners have just invested an initial sum of US$3million to kick-start the new
venture. It is expected that the total registered capital in this new venture
will be increased gradually to US$15million over a period of 2 years. The
Company will fund its portion of the investment in this venture by way of
internal resources and bank loans.
Shinsei Jiangyan has been
granted a piece of industrial land of 100mu (approximately 66,700 sq metres) in
Jiangyan city with an operating licence of 50 years. Shinsei Jiangyan is also
granted tax incentives where it is exempted from paying income tax at all in
its first 2 profitable years and 50% income tax in respect of its profits in
the next 3 years. Construction of the factory in Jiangyan city will commence
soon and is expected to be completed in the middle of 2007. Commercial production of the stainless steel
flanges is targeted to begin in Q4 2007 after some months of trial runs.
The above joint venture
investment in the manufacture of stainless steel flanges is in line with the
Company's strategy of expanding and growing its core business in the stainless
steel flanges.
None of the Directors or
substantial shareholders of the Company has any interest (direct or indirect)
other than through their shareholdings in the Company in the above transaction.
By Order
of the Board
NG KIM
KEANG
Finance Director
21 November 2006
|
