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News

Joint Venture To Set Up Precision Engineering And Machining Operations In Malaysia

SESDAQ listed HLN Technologies Limited ("HLN Tech"), a leading manufacturer of customized precision elastomeric and polymeric components, has through its wholly-owned subsidiary, HLN Micron Pte. Ltd. ("HLN Micron"), entered into a joint venture agreement with Mr Jeffrey Tiong Sin Lip ("TSL"), to set up precision machining operations in Johor Bahru, Malaysia.

The joint-venture company, to be called HLN Technologies Sdn Bhd ("HLN-SB"), will design and manufacture precision turned and machined components and sub assemblies for office automation, memory storage and the automotive industries.

This represents another major step for the Company in its efforts to break into new markets in the precision engineering industry.

The initial issued and paid-up capital of HLN-SB will be RM2.2 million, of which HLN Micron will hold 60% while TSL will hold the remaining 40%. The investment commitment is estimated at approximately S$2.0 million comprising fixed assets and working capital that will be financed through a combination of debt and equity. HLN Tech will fund its share of the investment with internal resources.

Mr Henry Hein, Vice Chairman and Executive Director of HLN Tech, will spearhead and drive the business. Mr Hein was formerly the co-founder and Executive Director of SGX-listed Innovalues Precision Ltd ("Innovalues"), a company also engaged in precision machining. Mr Hein is highly regarded as an industry veteran with an established track record of more than 20 years in this sector. He resigned from Innovalues in January 2004 and joined HLN Tech in March 2005.

TSL will be appointed as an executive director of HLN-SB. TSL has 25 years of experience in the precision machining industry and will bring to the joint venture ready business as well as a widely experienced core management team.

The Board of Directors believes that the investment will benefit the Company due to the synergies between HLN-SB and HLN Tech's existing business. The products and services of HLN-SB will complement and enhance HLN Tech's integrated range of products.

This investment is not expected to have any material impact on the Company's consolidated earnings and net tangible assets per share in the current financial year.

None of the Directors or substantial or controlling shareholders of HLN Tech has any interest, direct or indirect, in the above transaction

The initial public offering of the shares of HLN Technologies Limited was sponsored by Westcomb Capital Pte Ltd ("the manager"). The manager assumes no responsibility for the contents of this announcement.