ENGLEWOOD CLIFFS, N.J., Feb. 14 /PRNewswire-FirstCall/ -- JINPAN INTERNATIONAL LIMITED (AMEX:JST) announced today that it has completed its previously announced acquisition of 15% minority ownership interest in Hainan Jinpan Electric Company Limited, a sino-foreign cooperative joint venture company and the Company's main operating subsidiary ("Operating Subsidiary"), for a purchase price of US$11 million. The Company now owns 100% of the Operating Subsidiary.
Additionally, the Company has also purchased approximately 400,000 square feet of land in Wuhan, which is located in the center of China, closer to our material suppliers and has easy access to highway and railroad. The land will be used for the expansion of the Company's production facility. Including the land and first stage of construction will cost approximately US$6 million. The Company expects to complete the first stage of construction by the end of 2007 and begin production in early 2008. It is expected that the Wuhan facility would increase the Company's annual capacity by 50%. Both the acquisition of the 15% minority interest from Haikou and the Wuhan expansion were financed from the net proceeds the Company received from its stock sale in December 2006.
STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. DATASOURCE: JINPAN INTERNATIONAL LIMITED CONTACT: Mark Du of JINPAN INTERNATIONAL LIMITED, +1-201-227-0680 Web site: http://www.jstusa.net/
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