Phase One of PCB Plant in Jiangmen Commences Operation Posted on 21 Dec 03

KINGBOARD CHEMICAL HOLDINGS LIMITED
Phase One of PCB Plant in Jiangmen Commences Operation
Invests a Further RMB300 Million to Build Phase Two Facilities

Hong Kong, December 21, 2003 - One of the world's largest laminates and chemicals producer. Kingboard Chemical Holdings Limited (SEHK: 148) on December 19, 2003 officially opened the Phase One premises of Jiangmen Glory Faith PCB Company Ltd, its wholly-owned subsidiary, and laid foundation for Phase Two facilities. The printed circuit boards ("PCB") plant, scheduled for full operation later this month, will strengthen the Group's advantage built on economies of scale and vertical integration.

Phase One of the PCB plant has a gloss floor area of 70,000 sq m and a staff of 1,600, with a monthly capacity of 2,000,000 sq ft of single-side and 500,000 sq ft of multi-layer PCB per month.

The first phase of the PCB plant called for an investment of US$30 million (RMB250 million) and the second phase will require another US$36 million (RMB300 million) in capital expenditure. The second phase will be built on a site of gloss floor area of 33,000 sqm. When operational, the Phase Two facilities can turn out 600,000 sq ft of multi-layer (up to 50 layers) and high-precision PCB per month. It is also equipped with tin spraying, anti-oxidizing coating, and gold, tin and silver emulsion processing capabilities. Construction works are expected to complete in 12 months.

Mr Patrick Chan Wing-kwan, Managing Director of Kingboard Chemical said at the foundation ceremony: "Jiangmen enjoys a natural geographical advantage as it is close to Zhongshan and Zhuhai where a lot of consumer electronic and components factories are located. We hope to leverage this geographical advantage to help us tap further into the tremendous demand in the locality. Jiangmen is an important and strategic production base for us. Our investments in this municipality began in 2000 when we started collaboration with a local paper laminate plant to expand capacity. Today, we are also involved in producing glass epoxy laminates and formalin in Jiangmen."

Kingboard recently celebrated its 10th anniversary of listing in Hong Kong and unveiled a number of new business plans, including the establishment of four new plants in Lianzhou and Fogang in Guangdong and in Hainan.

The Jiangmen PCB plant has been adopting a stringent quality assurance policy since its trial run in November 2002. In its first year, the plant has successfully achieved accreditation from UL, QS9000 and CQC. The plant is installing an ERP system and working on compliance with ISO 14000 environmental accreditation.

About Kingboard Chemical
Kingboard Chemical Holdings Limited (SEHK: 148) is one of the world's largest manufacturers of laminates, operating more than 20 plants in China, vertically integrated with in-house capability for the production of copper foil, bleached kraft paper, glass yarn, glass fabric, formalin, hydrogen peroxide, epoxy resin and TBBA. The Group has been named for four consecutive years by Forbes Global as one of "The World's Best 200 Small Companies".

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Kingboard Chemical Holdings Limited