Within a relatively short span of time, the Group was transformed from a Singapore-based operation into one with a regional network of manufacturing facilities. In extending our geographical footprint of manufacturing facilities, we are able to provide better support to our existing major customers.

　Challenges & Achievements During The Year

In the last few years, we have encountered many challenges such as economic slowdown, the outbreak of SARS and the war in Iraq. FY 2004 was no exception, with the main challenge being the ongoing trend of multinationals relocating their manufacturing presence to North Asia.

This relocation trend prompted us to establish a manufacturing facility in Thailand and Shanghai in April 2002 and November 2002 respectively. Having established the manufacturing facilities in Thailand and Shanghai in FY 2003, we spent much of FY 2004 expanding the capacity and improving the utilisation of the facilities.

I am happy to report that we have achieved considerable success in raising the turnover contribution from these overseas manufacturing facilities to the Group. We will continue to regionalise our manufacturing facilities to serve our existing customers and secure new ones. With the latest commencement of manufacturing facility in Johor Bahru, Malaysia, Avaplas Group have established a cost competitive network of manufacturing sites in Asia to be a significant manufacturer in the regional precision plastics industry.

To be a significant player in Asia, size is important. In addition to an expanding regional footprint, we have sought to grow through strategic alliances. In April 2004, ARRK Corporation of Japan announced a voluntary conditional cash offer for the shares of Avaplas Ltd. At the close of offer on 28 May 2004, I am pleased to note that ARRK Corporation secured 58.6% of Avaplas.
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　A New Alliance, A New Chapter

The strategic direction of the ARRK Group is to position Avaplas as an important member of the ARRK Group