EANS-News: Balda AG with new strategy on the road to success
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Bad Oeynhausen (euro adhoc) – Balda AG with new strategy on the road to success
Balda is free of short-term bank liabilities after repayment.
Construction of new plant in Beijing is making rapid progress. Malaysia
subsidiary receives new orders.
Bad Oeynhausen, 14 December 2009 – Against the background of the new sales
campaign launched by the new management board, the recent strategic
direction of Balda AG, with separately operated but closely networked
business units, is proven to be successful. Balda Medical, since the third
quarter core business again and growing profitably, strengthens this
positioning. According to CEO Michael Sienkiewicz, Balda AG, listed in the
Prime Standard of the Frankfurt Stock Exchange, has achieved a turnaround
with its latest results.
Debt relief of short-term bank liabilities in Germany completed
As part of the already announced sale of 18.75 percent of its stake in touch
screen producer TPK, the Balda Group has now repaid its short-term bank
liabilities in Germany amounting to approximately 70 million Euros. ‘Thus we
have created the basis for new investment and sustainable growth for the Balda
Group,’ says Rainer Mohr, Chief Financial Officer (CFO).
New production plant in Beijing
With new customers and contracts and contrary to the global market trend for
mobile phones the MobileCom division is on a growth path. Production in the
first section of the new Beijing plant will start mid-2010. The new plant,
logistically well located near the Beijing airport, altogether covers an area
of 200 thousand square meters. In the first phase approximately 73 thousand
square meters of production space will be available. ‘This will be one of the
world´s largest and most modern plants for the processing of high-performance
plastics for smaller product sizes. With the new manufacturing Balda has
positioned itself even stronger for mass production in its MobileCom core
business. Niche products with fewer high-volume production batches for more
exclusive models will be produced by the Balda plant in Suzhou’, comments
Michael Sienkiewicz, CEO of Balda AG.
New orders and customers for the Malaysia region
Balda Solutions Malaysia (BSM) has secured a major contract with its long-
standing customer Canon. The contract includes the moulding of the camera
bodies and for the first time the assembly of a large part of up to four
digital camera models. Start of production is December 2009. In addition, the
company will be producing an online tablet device for a leading German internet
portal. The cooperation with SonyEricsson in the manufacturing of Bluetooth
headphones with a radio connection has been strengthened. In addition, BSM will
manufacture mechanical components for a Finnish company that produces Intel-
based phones. With these orders the company will significantly increase its
revenues in 2010.
Company Profile Balda AG
The Balda Group develops and produces complete plastic assemblies, electronic
products and products for the medical industry. The customers of Balda are
leaders in business from the mobile, entertainment and electronic
communications as well as pharmaceutical and medical technology markets.
The group has an international position with product sites in China, Malaysia,
India and Germany. A subsidiary in the United States serves North American
customers in product design and development. As part of a shareholding in a
leading manufacturer of touch screens in China, Balda participates in the
dynamic touch screen displays market.
* * *
This corporate news announcement includes ‘forward-looking statements’ which
are based on the current expectations of the management of Balda. They are
subject to risks and uncertainty because they relate to events and depend on
circumstances that will occur in the future, such as, for example, developments
in the mobile communications industry, changes in technology and the ability to
timely and successfully develop new products and various other factors. Balda
does not undertake any obligation to update publicly or revise forward-looking
statements except to the extent legally required.
This corporate news announcement is not an offer of securities for sale or a
solicitation of an offer to purchase securities in the United States or
elsewhere. The shares in Balda AG (the ‘Shares’) may not be offered or sold in
the United States or to or for the account or benefit of U.S. persons (as such
term is defined in Regulation S under the U.S. Securities Act of 1933, as
amended (the ‘Securities Act’) unless registered under the Securities Act or
pursuant to an exemption from such registration. The Shares have not been and
will not be registered under the Securities Act.
Further inquiry note:
Tel.: +49 (0) 5734 922-2728
issuer: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
sector: Semiconductors & active components
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München