Monday, January 31, 2011

GUH ... Jan11

It is looking at a horizontal expansion of its printed circuit board (PCB) business this year, via enhancing its product range and also through mergers and acquisitions (M&As).

The enhancement of GUH's PCB business would see capital expansion activities at its sites in Penang and in Suzhou, China.

Its potential targets for M&As are likely to be its local competitors, which are public-listed entities.
The company proposes to invest about RM20 million to increase production of capacity for GUH's double-sided PCB to 50,000 sq m per month in 2011, from 40,000 sq m per month last year. The RM20 million reinvestment for GUH's Penang PCB operations will include the expansion of one site which will be ready by November 2011.

PCBs will remain its income contributors in the next five years. But the percentage is likely to drop from the current 90 per cent to the range of 70 per cent and 80 per cent. This is due to the increased number of properties they are looking at launching, and also the revenue contribution from the water treatment plant project in China's Jiangsu Province.

GUH's subsidiary GUH International (HK) Pte Ltd earlier Jan 2011 announced that it had entered into a preliminary agreement to construct a water treatment plant within the 64 sq km Gaochun Economic Development Zone, which is located three hours away from Shanghai.

Apart from the water and wastewater treatment concessions, H'ng said GUH also wishes to explore power-generation projects (either conventional or renewal energy ones) and potential locations include Cambodia and Indonesia. GUH currently holds 20 per cent of a diesel-fired power plant in Phnom Penh, Cambodia, which runs under an 18-year concession from 1997 to 2015.

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