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Salcon Water (HK) Limited (SHK), a subsidiary of Salcon Berhad, has on 22 December, 2003, injected USD1.44 million into Shandong Changle Salcon Water Supply Company (SCSWS), a company classified as a foreign investment enterprise in the Peoples Republic of China. The USD1.44 million cash investment effectively represents a 75% shareholding in SCSWS which has a registered capital of USD1.92 million.
The investment will enable Salcon Bhd to utilise its expertise and experience in the water section to expand internationally, and to capitalise on opportunities in this sector in China.
The principal activity of SCSWS is to acquire, construct, manage and operate the water production, and distribution systems including the sale, billing and revenue collection of water in Changle County, Shandong Province, the Peoples Republic of China for a concession period of 50 years.
The investment in SCSWS is not expected to have a material impact on the financial performance of Salcon Bhd for the year ending 31 July 2004. It is expected to contribute positively in future years.
None of the directors or substantial shareholders or person connected with directors or substantial shareholders is deemed an interested party in the above investment.