Reply To Query: Agreement With the people's Government of Changle County, Shandong Province, People's Republic of China For The Proposed Construction Of A New 100 Mld Water Treatment Plant

BackApr 24, 2008
General Announcement
Reference No CMK-080424-1EF41

 

Company Name
:
SALCON BERHAD 
Stock Name
:
SALCON
Date Announced
:
24/04/2008

 

Type
:
Reply to query
Reply to Bursa Malaysia's
Query Letter - Reference ID
:
NM-080423-41954
Subject
:
REPLY TO QUERY: Agreement with The People's Government of Changle County, Shandong Province, People's Republic of China for The Proposed Construction of a New 100 MLD Water Treatment Plant

Contents
:
Further to the announcement of 21 April 2008 and the letter from Bursa Malaysia Securities Berhad dated 23 April 2008, Salcon Berhad wishes to provide further information in relation to the Agreement for the Proposed Construction of a New 100 MLD Water Treatment Plant ("New Plant") as follows: -

1. Expected date of commencement and completion of construction of the New Plant

The construction works for the New Plant is expected to commence in August 2008 and to be completed in December 2009.

2. Expected date of commercial operation of the New Plant

The commercial operation of the New Plant is expected to commence in January 2010.

3. Source(s) of funding for the New Plant and the breakdown thereof

Shandong Changle Salcon Water Company Limited ("SCS"), China will fund the proposed construction of the New Plant through additional capital
(Injection) from Salcon Water (HK) Limited ("SWHK"), Hong Kong and bank borrowing at the following proportion:-

Additional Capital : 40%
Bank Borrowing : 60%

The Company will fund the Injection through internally generated funds and bank borrowings.

SCS is a wholly-owned subsidiary of SWHK, which is a wholly-owned subsidiary of the Company.

This announcement is dated 24 April 2008.

Query Letter
content
:
We refer to your announcement dated 21 April 2008 in respect of the
abovecaptioned matter.

In this connection, kindly furnish Bursa Securities with the following
additional information for public release :-

1. Expected date of commencement and completion of construction of the New
Plant.
2. Expected date of commercial operation of the New Plant.
3. Source(s) of funding for the New Plant and the breakdown thereof.

Kindly furnish Bursa Securities with your reply within one (1) market day from
the date hereof.




Yours faithfully





TAN YEW ENG
Head, Issuers
Listing Division, Group Regulations




MZM/NMA
c.c:- Head, Market Surveillance Department, Market Supervision Division,
Securities Commission (via fax)