Hong Kong, March 18, 2007 - Kingboard Chemical Holdings Limited (HKEx: 148) ("Kingboard Chemical") today announces the commission of the Phase I facilities of its new Coke/Methanol Plant in Neiqiu County, Xingtai Municipality, Hebei Province, the PRC (中國河北省邢台市內邱縣). Construction of the Phase II facilities will also commence after the foundation ceremony held today. The Group has invested RMB 870 million in Phase I facilities and a further RMB 720 million to be committed in Phase II.

The ceremony was hosted by Mr Paul Cheung Kwok Wing, Chairman, and Mr Patrick Chan Wing Kwan, Managing Director, of Kingboard Chemical, in the presence of Mr Guo Gengmao, Governor of Hebei Province and officials of Hebei government.

Kingboard Chemical has a highly vertically-integrated operation with three core businesses: laminates, chemicals and printed circuit boards (PCBs). The coke/methanol plant is an integral part of the Group's upstream chemicals operation, and has become the new growth driver for the Group.

Phase I of the coke/methanol plant was built on a site of 400,000 sq. m, with construction works commenced in July 2003. The plant has a designed annual capacity of 1 million tonnes of coke, 36,000 tonnes of tar, 12,000 tonnes of benzene and 100,000 tonnes of methanol.

Phase II facilities are scheduled to commence operation in early 2008 with similar annual capacity as Phase I. Both plants adopt a continuous recycling production system which will recycle the gas emission during production process. Coke gas is a by product during the production of coke while this can be used as a raw material for the production of methanol.

Mr Paul Cheung Kwok Wing, Chairman of Kingboard Chemical, remarked: "We anticipate significant synergies to be derived from our integrated coke and methanol operations in Hebei. As part of our efforts to participate in the recycling industries and a cleaner production, we are proud to present our pioneering technology which applies emitted coke gas into the production of methanol, resulting in zero emissions of pollutants and achieves environmental friendly purpose.

Key Facts of Phase I of Coke-Methanol Plant

Location	Neiqiu County, Xingtai Municipality, Hebei Province, China
Annual capacity	Phase 1	Phase 2
	1 million tonnes of coke	1 million tonnes of coke
	36,000 tonnes of tar	36,000 tonnes of tar
	12,000 tonnes of benzene	12,000 tonnes of benzene
	100,000 tonnes of methanol	100,000 tonnes of methanol
GFA	400,000 sq.m	199,000 sq.m

About Kingboard Chemical
Kingboard Chemical Holdings Limited (HKEx: 148) is a global leader in rigid laminates and printed circuit boards as well as a major chemicals supplier in China. The Group's core manufacturing capability comprises an integrated network of more than 50 plants in China. The Kingboard Group of companies also includes Kingboard Laminates Holdings Limited (HKEx: 1888), Kingboard Copper Foil Holdings Limited (listed on the Singapore Exchange) and Elek & Eltek International Company Limited (listed on the Singapore Exchange).