Greater China Precision Components Ltd.
Greater China Precision Components Ltd.: Proposed Expansion
Greater China Precision Components Ltd. / Key word(s): Miscellaneous Greater China Precision Components Ltd. (‘GCPC’ or the ‘Company’): Proposed Expansion SINGAPORE/HUIZHOU, 25 November 2013: GCPC (ISIN SG9999005052 / WKN A0MZS3 / Ticker 49G) The Board of Directors of Greater China Precision Components Limited (the ‘Company’), and together with its subsidiaries (the ‘Group’) wish to announce that the Group intends to construct a new production base to expand its production capacity (the ‘Proposed Expansion’). The Proposed Expansion comprises the following: The Group will invest about RMB120 million for the Proposed Expansion. The construction work is expected to commence in December 2013 and is expected to complete by end FY2014. The actual completion is subject to the full installation and trial production of the new equipment and machinery. The new production plant will be constructed on a plot of industrial land of approximately 46,000 sqm originally reserved for future expansion and is located about 1 km away from the existing production base. Rationale for the Proposed Expansion The Group’s production demand has exceeded its existing production capacity. With the expected higher demand from the existing clientele, the Group therefore expands its production capacity facilities to cater for the additional production volume as well as to supplement the existing production capabilities. The Proposed Expansion is expected to increase the production capacity of the Group by another 40% and could accommodate another 1,500 workers on site. Construction of Buildings The production and hostel facilities will take up a floor area of approximately 38,000 sqm and 11,000 sqm respectively. The Company had carried out an open tender process with 8 prospective contractors being shortlisted for final evaluation. After taking into consideration of the track records, experience, costing and qualifications of these shortlisted contractors, the building construction contract of approximately RMB45 million has been awarded to Jiangxi Zhongsheng Jianzhu Gongcheng Co., Ltd (‘江西中盛建筑工程有限公司’). The total building cost is about RMB65 million, which includes foundation piling works, construction of supplementary facilities and infrastructures as well as the abovementioned building construction. Equipment and Machinery An estimated RMB55 million will be further invested for installing new production equipment and machinery upon completion of the building construction. Source of Funds The total investment of RMB120 million will be funded substantially by bank borrowings as well as internally generated source. On behalf of the Board End of Corporate News 25.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | Greater China Precision Components Ltd. | |
80 Robinson Road, #02-00 | ||
068898 Singapur | ||
Singapore | ||
Phone: | +65 62363427 | |
Fax: | +65 62364399 | |
E-mail: | investor@greater-cpc.com | |
Internet: | www.greater-cpc.com | |
ISIN: | SG9999005052 | |
WKN: | A0MZS3 | |
Listed: | Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart; Frankfurt in Open Market (Entry Standard) | |
End of News | DGAP News-Service |
241511 25.11.2013 |