Keppel FMO, a wholly owned subsidiary of Keppel Integrated Engineering (KIE), has entered into a joint venture to provide facilities management, healthcare management and consultancy, and healthcare personnel training services to Linyi People’s Hospital in Shandong, China.

The joint venture company, Sinlu Hospital Management Company Limited, is 55% owned by Keppel FMO. The other partners are Linyi People’s Hospital (20%), Soullon Information Technology Co., Ltd (10%), and SIMA Holdings Pte Ltd (15%).

Total share capital of the joint venture is RMB3 million. Keppel FMO’s initial capital investment in the joint venture is therefore RMB1.65 million. If required, all shareholders are committed to put in additional funds totalling RMB2 million.

The joint venture is subject to mutual agreement on the operation and management contracts to be signed between the joint venture company and Linyi People’s Hospital, which is expected to be finalised by the second half of 2006. The joint venture company will be established after the terms of these contracts have been agreed.

Mr Goh Hai Kok, General Manager of Keppel FMO, said “This contract marks Keppel FMO’s first foray into China’s burgeoning healthcare market. As a leading provider of facilities management services to healthcare organizations in Singapore, Keppel FMO is keen to share our expertise and experience with Linyi People’s Hospital so that it could become a showcase for world-class healthcare standards for hospitals in China.

“Only 4% of hospitals in China are privately-managed at present. As the Chinese government restructures the government hospitals, this will present opportunities for the joint venture to offer its services to hospitals in the rest of China.”

As one of the largest facilities management service providers in Singapore, Keppel FMO provides facilities management and operation services to aviation facilities, educational institutions, healthcare facilities, manufacturing plants, hi-tech parks, as well as commercial and purpose-built buildings.

In Singapore, Keppel FMO provides services to Alexandra Hospital, Changi General Hospital, National University Hospital, Singapore General Hospital, KK Women’s and Children’s Hospital, Institute of Mental Health and Ang Mo Kio Community Hospital.

The aforementioned contract is not expected to have any significant impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2006.


Background information

Keppel FMO
Established in 1985, Keppel FMO provides one-stop integrated facilities management services, particularly for mission critical facilities. Besides Singapore, Keppel FMO is also providing facilities management services for projects in Beijing, Shanghai, Suzhou and Guangzhou in China.

SGP International Management Academy (SIMA)
ISO9001: 2000 certified, SIMA is a private management education and training institution registered with the Ministry of Education, Singapore. Founded in December 2000, SIMA’s mission is to provide high value-added management education, training and consultancy programmes to help the Chinese-speaking corporate and individual clients in the region improve their competitiveness in the new knowledge-based economy.

Linyi People’s Hospital
Linyi People’s Hospital is the biggest comprehensive hospital in the southeastern region of Shandong province. It is the centre of medical care, teaching, scientific research, preventative care, rehabilitation, and emergency care for the whole city of Linyi, which includes nine counties and has a population of 10.06 million people.

Established in 1891, Linyi People’s Hospital presently has 2009 staff and 2056 beds. The multiple award-winning hospital receives 1,100,000 outpatient visits and performs more than 35,000 operations annually.

Soullon Information Technology Corporation, Ltd
Soullon Information Technology Corporation, Ltd is a high-tech enterprise established by Shandong University and Luneng Group. It is the biggest OMR manufacturing base in the Asia-Pacific region, an important domestic computer network system developer and supplier, and a key R&D and manufacturing unit of crystal material and devices in China.

For further information, please contact

Teo Chang Ching
Senior Executive
Group Corporate Communications
Tel: (65) 64136426
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