Announcement Details :
The proposed construction of the New Plant is an expansion of the treatment capacity under the existing concession of which, the remaining concession period is 45 years. Upon commercial operation of the New Plant, the existing 40 MLD Nan Liu Quan water treatment plant ("Existing Plant") will be handed over to and closed down by the Changle Government.
SCS shall be responsible for the costs and funding for the New Plant, and the cost for the New Plant is estimated at USD14.49 million (approximately RM45.51 million). A valuation will be made on the Existing Plant, which will be recouped within 1 month after the commercial operation of the New Plant.
SCS is a wholly-owned subsidiary of Salcon Water (HK) Limited, which is a wholly-owned subsidiary of the Company.
The New Plant will not have a significant effect on the earnings or net assets of Salcon Group for the financial year ending 31 December 2008, and the share capital of the Company. However, it is expected to contribute positively to the future earnings of Salcon Group.
The risks factors for the proposed construction of the New Plant include but not limited to those associated with changes in economic, political and regulatory conditions in PRC such as changes to government policies and administration, taxes and exchange control regulations.
None of the Directors and/or major shareholders of the Company, or persons connected with them have any interest, direct or indirect in the proposed construction of the New Plant.
This announcement is dated 21 April 2008.
