Balda: With new strategy on the road to success

Balda is free of short-term bank liabilities after repayment. Construction of new plant in Beijing is making rapid progress. Malaysia subsidiary receives new orders.

Against the background of the new sales campaign launched by the new management board, the recent strategic direction of Balda AG, with separately operated but closely networked business units, is proven to be successful. Balda Medical, since the third quarter core business again and growing profitably, strengthens this positioning. According to CEO Michael Sienkiewicz, Balda AG, listed in the Prime Standard of the Frankfurt Stock Exchange, has achieved a turnaround with its latest results.

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Debt relief of short-term bank liabilities in Germany completed
As part of the already announced sale of 18.75 percent of its stake in touch screen producer TPK, the Balda Group has now repaid its short-term bank liabilities in Germany amounting to approximately 70 million Euros. ‘‘Thus we have created the basis for new investment and sustainable growth for the Balda Group,’’ says Rainer Mohr, Chief Financial Officer (CFO).

New production plant in Beijing
With new customers and contracts and contrary to the global market trend for mobile phones the MobileCom division is on a growth path. Production in the first section of the new Beijing plant will start mid-2010. The new plant, logistically well located near the Beijing airport, altogether covers an area of 200 thousand square meters. In the first phase approximately 73 thousand square meters of production space will be available. “This will be one of the world’s largest and most modern plants for the processing of high-performance plastics for smaller product sizes. With the new manufacturing Balda has positioned itself even stronger for mass production in its MobileCom core business. Niche products with fewer high-volume production batches for more exclusive models will be produced by the Balda plant in Suzhou“, comments Michael Sienkiewicz, CEO of Balda AG.

New orders and customers for the Malaysia region
Balda Solutions Malaysia (BSM) has secured a major contract with its long-standing customer Canon. The contract includes the moulding of the camera bodies and for the first time the assembly of a large part of up to four digital camera models. Start of production is December 2009. In addition, the company will be producing an online tablet device for a leading German internet portal. The cooperation with SonyEricsson in the manufacturing of Bluetooth headphones with a radio connection has been strengthened. In addition, BSM will manufacture mechanical components for a Finnish company that produces Intel-based phones. With these orders the company will significantly increase its revenues in 2010.

More Information: www.balda.de

Balda AG, Bad Oeynhausen, Germany

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