Listed Companies' Announcement
FEDERAL INTERNATIONAL (2000) LTD
FEDERAL INTERNATIONAL SETS UP TRADING ARM IN KOREA TO
SUPPORT EXPANSION INTO NORTH ASIA MARKET
April 30 2002, Singapore -- Mainboard-listed Federal International (2000) Ltd ("Federal"), an established flowline control products distributor and service provider supporting the oil and gas and related industries in the region, today announced that it has incorporated a wholly owned subsidiary, Federal International Korea Private Ltd ("Federal Korea") to undertake the trading and procurement of specialized valves and other flowline control products. With the setting up of this new subsidiary, Federal currently has operations in United Kingdom, United States of America, India, Thailand, Shanghai and Indonesia, apart from Singapore.
Located in Seoul, Korea, the authorized capital of Federal Korea is KRW 780 million comprising 156,000 equity shares of KRW 5,000 each. The issued and paid-up capital is KRW 195 million (approximately US$150,000).
Commented Mr K K Koh, Federal's Executive Chairman and CEO, "The setting up of our trading and procurement office in Korea is in line with our global expansion plans. It is aimed strategically to capitalise on the growth potential of the North Asian market in terms of the oil and gas sector. This initiative is in line with our overall business strategy to move upstream and scale up the value chain to provide higher value-added design and manufacture of specialised valves and related products."
This investment is not expected to have any material impact on the net tangible assets or earnings per share of Federal for the current financial year ending December 31, 2002.
None of the Directors or substantial shareholders of Federal has any interest, direct or indirect, in the above said transaction.
About Federal International
Federal is principally involved in the distribution of flowline control products (including valves, structural steel, steel flanges/connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries. By moving upstream into the design and manufacture of specialised valves and related products, Federal aims to be an integrated service provider and procurement specialist in the energy and infrastructure industries offering a complete one-stop service package.
Issued on behalf of Federal International (2000) Ltd
By Stratagem Consultants Pte Ltd
For further information, please contact:
Ms Gwen W Ling/Tham Moon Yee
Submitted by Chng Geok, Company Secretary on 30/04/2002 to the SGX