Hollysys Automation Technologies Announces Agreement in Principle to Acquire 20-Acre Site to Construct New Corporate Headquarters and Automation & Drive Production Facility
Oct 17, 2007
Beijing, China – October 17, 2007 – Hollysys Automation Technologies, Ltd. ("Hollysys") today announced that it has reached an agreement in principle to acquire the rights to a 20-acre (80,000 square meters) site in a new high-tech park located in southern Beijing. Subsequent to approval of the acquisition by Hollysys's Board of Directors, the Company will commence construction of a new corporate headquarters and a new automation and drive ("A&D") production facility. Hollysys is planning to begin construction in the first quarter of 2008.
Hollysys intends to sell its present headquarters building eventually. The proceeds of such sale are expected to fully cover the costs associated with acquiring the land and constructing the new headquarters building.
Dr. Wang Changli, Hollysys' Chief Executive Officer commented, "By obtaining the rights to such prime land in Beijing on favorable terms the cost of expanding our corporate offices and entering into the A&D market will be substantially reduced. This new high-tech park in southern Beijing is a very prestigious location where many Fortune 500 companies are located, and we are honored to have the opportunity to share this address with them.
We believe that the surging A&D market is a natural complement to our core automation control business. This new facility will allow us to combine high-tech motor and drive technologies with Hollysys' control systems to offer customers totally integrated solutions. We expect that this new A&D business will begin to generate significant profits in late 2009, and that it will eventually become one of our major profit centers."
Hollysys has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing over numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors.
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