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 Consumer Products, Electronics, Mergers & Acquisitions, 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

Magna opens new exterior facility, plans for lighting investment

October 30, 2014 1:36 pm ET

Canadian automotive supplier Magna International Inc. on Oct. 28 opened a new injection molding and robotic paint line facility in Delta Township,...    More

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

Detroit Manufacturing Systems to hire 200 for F-150 production

October 29, 2014 10:40 am ET

Interior trim supplier Detroit Manufacturing Systems LLC plans to hire 200 assembly workers by January to support production growth of Ford Motor Co....    More

Image

Cosmetic packaging maker expands in China

October 28, 2014 3:32 pm ET

A $180 million expansion project by the Derjin Group of Taiwan has broken ground in China's Jiangsu province.    More

Image

Facing labor shortage, one processor starts its own bus service

October 27, 2014 2:08 pm ET

Like much of the manufacturing industry, Primera Plastics Inc. in Zeeland, Mich., has had trouble finding qualified workers to fill gaps in its staff....    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events