News

We refer to the announcements made by Tan Chong Motor Holdings Berhad (“TCMH”) on 11 December 2009 and 15 December 2009 in respect of the receipt of a Certificate of Investment dated 7 December 2009 (“Certificate of Investment”) by TCIE Vietnam Pte Ltd (“TCIE Vietnam”), a wholly-owned subsidiary of TCMH Group, to undertake automotive project in Vietnam, including manufacturing and assembly of buses, trucks and passenger cars.

The capital structure of TCIE Vietnam as stipulated in the Certificate of Investment is as follows:

Charter capital (equity capital)    :           USD 6.0 million

Total investment capital              :           USD15.0 million

Based on the current business plan of TCIE Vietnam, the planned production capacity of its manufacturing plant (“the Plant”) is 7,200 units per year per shift (Phase 1) and the construction cost of the Plant is estimated at USD33.0 million.

On 8 March 2011, TCIE Vietnam submitted an application to Danang Industrial and Export Processing Zones Authority (“Danang Authority”) for amendment of the Certificate of Investment in respect of the increase in the total investment capital from USD15.0 million to USD40.0 million (the charter capital remains at USD6.0 million) and to allow TCIE Vietnam to undertake design, manufacturing and assembly of buses, trucks and passenger cars (“Amendment of the Certificate of Investment”).  The Amendment of the Certificate of Investment was approved by the Danang Authority on 30 March 2011.

Piling works for the construction of the Plant has begun and construction of the Plant is expected to be completed by December 2011, ahead of production in third quarter of 2012.