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.
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."