Management group buys Balda's injection operation in Malaysia

By Gurdip Singh
Correspondent

Published: May 7, 2013 12:05 pm ET
Updated: May 7, 2013 12:06 pm ET

Related to this story

Topics Mergers & Acquisitions, Consumer Products, Electronics, Injection Molding

IPOH, MALAYSIA — The Malaysian management of Balda AG's injection molding plant in Ipoh, Malaysia, have purchased the plant's production and services, effective March 31.

The new owner, Blue Ocean Genius Sdn Bhd, is majority owned by James Lim, who was managing director of the Balda AG subsidiary, Balda Solutions Malaysia Sdn Bhd.

Bad Oeynhausen, Germany-based Balda will continue to own the land and building, and lease them to the new ownership group. Blue Ocean will have the option to buy the facility.

Balda AG announced the deal on April 26. Balda Solutions Malaysia officials did not comment, saying the deal was still under confidential negotiations.

The Ipoh site molds products for the consumer electronics industry.

Balda said it sold the Malaysian operation because it is focusing on prospects that offer the opportunity for long-term growth and a sustainable operating return on sales of at least 15 percent. In the first three quarters of the 2012/2013 financial year, the Ipoh site has posted an operating loss.

Balda said that Blue Ocean is paying "a symbolic price" to acquire the shares of Balda Solutions Malaysia. Balda expects the transaction to result in a cash inflow of around 6 million euros ($7.8 million) over the next three years, primarily through rental income.

Balda CEO Dominik Müser said in a news release: "The sale of the Ipoh site is another key step towards profitable growth for the Balda Group. The urgently needed strategic development of activities in Malaysia would have required substantial investments in the coming years in a weak environment for consumer electronics. Following the sale of the loss-making site, all of our group's activities are now profitable. At the same time, by holding on to the land and building, we have retained valuable assets in Malaysia."


Comments

Management group buys Balda's injection operation in Malaysia

By Gurdip Singh
Correspondent

Published: May 7, 2013 12:05 pm ET
Updated: May 7, 2013 12:06 pm ET

Post Your Comments


Back to story


More stories

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

Bayer PC used for lightweight, durable luggage collection

July 24, 2014 10:52 am ET

Bayer MaterialScience has partnered with U.S.-based travel goods manufacturer Andiamo Luggage LLC to create a special plastic for suitcases that is...    More

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of bever...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events