Aluminium alloy supplier Soon Lian to buy Tuas factory for S$7.8 million

Soon Lian Holdings, a supplier of aluminium alloy has signed a deal with Halliburton Far East to buy a single-storey deserted factory at Tuas for S$7.8 million.

The property has a built-in area of about 4,800 square meters and a land area of about 9,800 square meters. The company is planning to vacate its existing premises and its directors are of the view that the new property would be an appropriate substitute to serve as a facility for the group's storage and fabrication of aluminium alloy materials as well as to house their administrative and sales offices.

Since, the previous premises was too big for its business, they feel the new property is perfect for their current business. "The built-in area of the (new) property, which is approximately 39 per cent smaller than the existing property, is suitable and sufficient for the current operations of the group," the company representative said.

The deal will be funded by internal resources, including a portion of the proceeds from the sale of the existing property, and bank loans. The final purchase depends on the written in-principle approval from JTC. The property is leased from JTC for a term of 30 years which started from January 2008. An extraordinary general meeting would be held to seek approval from shareholders for the proposed deal before further taking steps towards its implementation.