JLJ Holdings Ltd. plans to spend S$1.5 million (US $1 million) to buy equipment including injection molding machines for its Asian plants.
The Singapore-based toolmaker and injection molder made that announcement at about the same time it went public July 10 with an initial public offering on the Singapore Exchange.
Proceeds from the sale of stock would help expand JLJ's plant in Kunshan, China, and a similar facility in Johor, Malaysia, JLJ officials said. The company said that S$1.3 million (US$935,000) would be used as a working capital.
JLJ also plans to transform its Singapore plant into a technical support hub and manufacturing center for niche products.
JLJ officials had hoped to raise S$4.3 million (US$3.1 million) from the 19 million shares being offered in the IPO. Post-launch financial data was unavailable.
Established in 1993, JLJ designs, fabricates and sells plastic injection molds. It also provides injection molding and value-added services. The company's customers in consumer electronics, computer peripherals, automotive and household appliances markets are located in the United States, Europe and Malaysia.
Founder and Executive Chairman Jacky Chua said he is banking on continued growth for the firm, thanks to the succes of its major major customers: He singled out Apple Computer Inc.'s ongoing business performance.
Given our well-established relationship with Apple, we are well positioned to ride on the continued growth in tandem with the global demand for Apple products, Chua said.
Other key JLJ markets include medical diagnostic devices and precision laboratory equipment.
JLJ's sales improved slightly to S$50.8 million (US$36.5 million) in 2008 from S$49 million (US$35 million) in 2007.
But 2008 net profit was lower at S$4.9 million (US$3.5 million), down from S$5.8 million (US$4.2 million) in 2007.
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