Dynamic Colours to acquire new production lines for S$5.2m

Yearly production capacity to rise by 5,000MT.

In a disclosure to the Singapore Exchange, the Board of Directors of Dynamic Colours Limited announced that S.L. Packaging Industries Pte. Ltd., a wholly-owned subsidiary of the Company has entered into a contract with Windmoller & Holscher KG to acquire 3 OPTIMEX FFS coex 3 layer blown film line for total contract price of EURO 3,080,000 (roughly S$5.2m).

The new production lines will be set up at the Group's subsidiary located at PLO 80, Jalan Cyber 5, Kawasan Perindustrian Senai Fasa III, 81400 Senai, Johor Darul Takzim, Malaysia to supplement the Group's current Polyethylene production lines.

The new production lines will have the capacity to increase the production of FFS Film by another 5,000 metric tonnes per annum and to expand into the production of Stretch Hood Film at 2,500 metric tonnes per annum.

The contract price for the acquisition was arrived on a willing buyer and willing seller basis and will be funded by external borrowing and internally generated funds.