Linear Corp Bhd ... July 2008

It is eyeing its first overseas venture for district cooling systems in the Middle East and exploring similar ventures in other parts of Asia.

Following its success in developing district cooling systems at the Curve in Mutiara Damansara and Bandar Baru Perda in Bukit Mertajam, it was now in negotiations with both local and foreign townships to develop further district cooling systems. Each cooling system can cost above RM70 million to RM80 million, depending on the extent of coverage.

It expects to have its first overseas project sealed in the Middle East by the fourth quarter 2008 via a joint venture with a local party, while they are also in negotiations for another three district cooling systems via joint ventures.
They are also negotiating with some parties in India for the same but that is still on the drawing board.

Linear wanted to leverage on the current high energy cost by offering district cooling systems that could translate into substantial savings of between 30% and 50% for its customers compared to conventional air conditioning units. With the imminent global focus and commitment in energy conservation as well as control of carbon dioxide emission to combat global warming, there is a vast upside potential for itd district cooling business.

Efforts are also being carried out to fully develop the district cooling systems in Malaysia.

They are currently in talks with developers of new townships to adopt this paradigm shift and conceptual change within their development with the district cooling systems.

Efforts are also under way to reposition the manufacturing and servicing of cooling towers which are used by the industries.

Linear is also seeking to further enhance its cooperation with US-based Baltimore Aircoil Company (BAC) to capture BAC’s worldwide market. With BAC as equity partner to bring in technology and state-of-the-art expertise in cooling towers, it hopes to develop themselves to be competitive as a quality and suitable partner for BAC worldwide.

Following a restructuring exercise which saw several subsidiaries being closed down and a new management team in place, Linear posted a net profit of RM4.98 million in FY07 versus a net loss of RM19.99 million in FY06.