Expansion Plan in Thailand
The Board of Directors of Evergreen Fibreboard Berhad wish to announce that they are embarking on an expansion plan for a new Super Thin High Density Fibreboard plant in Thailand.
The Expansion plan investment is approximately RM120 million that will be through Siam Fibreboard Co. Ltd. and will be situated in the same location occupying 20 hectares of land area.
The new plant with a designed capacity of 800m3 per day or 268,000m3 per year is a fully automated state-of-the-art plant, with the latest technology of world's fastest speed at over 100m per minute and world's 1st Super Thin 1.5mm High Density Fibreboard of up to 1100kg/m3.(Normal high density fibreboard is 900kg/m3) It is also capable of producing normal medium density fibreboard with thickness ranging from 2.5mm to 25mm. This expansion will put the group's combined medium density fibreboard capacity to 828,000m3 per year.
The new plant is expected to commission in the 1st quarter of 2007 and is mainly for the export market.
The expansion will further increase the production capacity, operational efficiency as well as broaden the product range of the Evergreen Group. The new line will also enable the Group to produce higher value added zero formaldehyde products such as high moisture resistant and fire retardant fibreboard more efficiently. In essence ,the expansion will augur well with the Group's objective of becoming one of the most competitive and comprehensive producers of medium density fibreboard products in the region.
Effect of Transaction
1. Earning and NTA
The Expansion Plan is not expected to have any effect on the net tangible assets of the group for the financial year ending 31st December 2005. However it is expected to contribute significantly to the profitability of the group when it is fully commissioned.
2. Share Capital
3. Source of Funding
Director's and Substantial Shareholder's Interest
None of the Directors and/or substantial shareholders of the group and/or persons connected to them have any direct/indirect interest in the Expansion Plan.
The expansion plan is not subjected to the approval of shareholders but is subjected to approvals of license from the authorities in Thailand.
|- Bursa Malaysia, November 25, 2005|