New machines will double Starken AAC’s current production capacity.

KUALA LUMPUR, Apr 6, 2016 – Chin Hin Group Berhad, a well-known Malaysian integrated building materials specialist, signed a purchasing contract today with a German-based counterpart, Wehrhahn GmbH (“Wehrhahn”), for the purchase of supply machineries to facilitate the Company’s Autoclave Aerated Concrete (“AAC”) production line at its upcoming new factory which is estimated to require an investment of RM85 million.

The contract which is valued at EUR4 million (approximately RM18 million) for one (1) machine line was signed at an official ceremony held at Chin Hin’s headquarters in Kuala Lumpur and witnessed by representatives from both companies.

The machine line which is a green technology used for the production of AAC blocks and wall panels, will be installed at Chin Hin’s upcoming factory, which is targeted to be completed in the next 1-2 years.

The acquisition of these new assets is in line with the Company’s post-listing business expansion plan, and will allow additional production capacity by 420,000 meter cubes, as well as enabling Chin Hin to expand into overseas markets, especially in the Asia Pacific region.

The demand for wall panels is increasing as the Malaysian government in particular is encouraging the use of this material in the Industrialized Building Systems (“IBS”), and will be distributed locally as well as in Singapore.

Concurrently, Chin Hin is working on further developing their current manufacturing facility, Starken AAC Sdn. Bhd. (“Starken AAC”), a wholly-owned subsidiary of Chin Hin, and increasing its production capacity to cater to the anticipated growing demand for their own manufactured products.

To date, Starken AAC has successfully secured repeated purchase orders for its AAC products from customers in Hong Kong, Australia, Singapore, Taiwan, the Philippines and Indonesia.

Group Managing Director of Chin Hin, Chiau Haw Choon expressed, “Going forward, Chin Hin will place more focus on our manufacturing of AAC and pre-cast concrete division as we expect it to be a key growth driver for the Company in the future.

“We are extremely pleased that the acquisition process went smoothly and we wish to extend our sincere thanks to Wehrhahn for their advisory in selecting the best systems for our business and subsequently, the supply of these machines. The high manufacturing standards they ascribe to are evident in the quality of their products, which the Company foresees will be valuable assets over the long term.”

Wehrhahn is a manufacturing company that specialises in the design, manufacture and supply of machines and industrial plants, for the production of construction materials such as AAC blocks and panels, fibre cement boards and dry mixer mortars.

Founded in 1892 by young engineer, Heinrich Wehrhahn, it has over 120 years of history in the building materials industry, providing users with its series of flat cake autoclaving machines, namely the PLUS plant systems and the SMART plant systems.

These plants are each designed to facilitate continuous production without interruptions for various production capacities of up to 2000 meter cubes daily at lower costs, and are equipped with high-end recycling technology to produce “zero process waste”. As a solutions provider, each of Wehrhahn’s plants are individually customised and patented to meet all specific requirements of its customers.

Over the years, Wehrhahn has evolved into a global leader in AAC technologies and innovation, with more than 120 AAC plants sold to clients worldwide, and have set the benchmark in the market with its highest level of qualified final products. The combination of precision, gentle handling of building materials as well as its fully automated processes are an asset for every investor of Wehrhahn’s plants.

Managing Partner of Werhahn, Torsten Dietz shared, “Through all our processes and operations we aim to achieve the highest level of quality and reliability in all our finished products whilst staying cost-efficient and addressing all the needs of our customers.

“We appreciate therefore, that Chin Hin has decided to reach out and invest in the top quality machines that Wehrhahn has to offer. It has been a pleasure working with them and we look forward to a continued positive business relationship with the Company in the future.”

Chin Hin is currently listed on the Main Market of Bursa Malaysia Securities Berhad under the stock name CHINHIN and stock code 5273.