SembCorp's Industrial Park business enters North Vietnam with a third VSIP project

July 9, 2007

SembCorp Industries (SembCorp) announces that its wholly-owned subsidiary, SembCorp Parks Holdings (SembCorp Parks), has today entered into a joint venture agreement to develop an industrial township in Bac Ninh Province, North Vietnam. This marks SembCorp’s entry into the growing North Vietnam market, as well as the third Vietnam Singapore Industrial Park (VSIP) project.

Under the agreement, the Vietnam Singapore Industrial Park and Township Development Joint Stock Company (VSIP JSC) will be incorporated to develop the upcoming industrial township. SembCorp Parks will hold an effective shareholding stake of 40.31% in VSIP JSC. The shareholders of VSIP JSC comprise Vietnam Singapore Industrial Park JV Co. with a 70% stake, SembCorp Parks with a directly-held 12% stake, Star Investment Joint Stock Company with a 10% stake and Investment & Industrial Development Corporation (Becamex IDC) with an 8% stake.

VSIP JSC will invest a total of US$103.7 million in the Bac Ninh industrial township, over a period of five years. US$10.3 million of this total investment in the industrial township will be funded through equity from VSIP JSC, while the rest will be funded through debt and internally generated funds.

The upcoming 700-hectare industrial township, Vietnam Singapore Industrial Park - Bac Ninh (VSIP-Bac Ninh), consists of 500 hectares of industrial area and 200 hectares for residential and commercial developments. Strategically located within Vietnam’s Northern Economic Zone at the boundary of Hanoi and Bac Ninh Province, the industrial township will be developed in phases in tandem with customer demand, with construction expected to commence in early 2008. The industrial area will consist of mainly prepared land parcels with ready-built factories to cater for quick start-up by manufacturers setting up operations in the Park. In addition, it will feature an on-site logistics hub with customs clearance facilities for added convenience. Meanwhile, the residential area will meet the needs of tenants of VSIP-Bac Ninh.

This new industrial township comes after SembCorp Parks’ highly successful VSIP I and II projects established in Binh Duong Province. Said Ms. Low Sin Leng, SembCorp Parks’ Executive Chairman and Co-Chairman of Vietnam Singapore Industrial Park JV Co. Ltd.: “Given our strong presence and track record in South Vietnam, it is opportune for SembCorp Parks to establish a new project in North Vietnam to seize growth opportunities. We have served more than 300 industrial customers over the years and many have indicated an interest in North Vietnam to take advantage of its proximity to China. We are therefore confident that VSIP-Bac Ninh will replicate our success in Binh Duong and contribute to the economic and community development of Bac Ninh."

This investment does not have a material impact on the earnings per share and net tangible asset per share of SembCorp Industries for the financial year ending December 31, 2007.