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We have in place procedures designed to protect and preserve the environment and to minimise pollution. We subject all our waste products (such as waste water) to treatment and processing. We also engage accredited waste disposal sub-contractors to process and dispose of all waste products that we are unable to adequately treat. In April 2001, our Kulai plant in Johor, Malaysia was awarded the ISO 14001 environmental management system certification.
Our Malaysian operations are subject to Malaysian laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection, including the Environmental Quality Act 1974 of Malaysia.

We have one waste treatment plant for our manufacturing operations in Tebrau, Johor Bahru, and are currently in the midst of constructing a second waste treatment plant.

We are also subject to environmental laws and regulations in the PRC in respect of our operations in Suzhou, PRC. The major environmental laws and regulations applicable include the Environmental Protection Law, the Water Pollution Prevention Law, the Atmospheric Pollution Prevention Law, the Environmental Noise Pollution Prevention and the Environmental Impact Assessment Law.

Our operations in Saraburi, Thailand are subject to environmental laws and regulations such as the Environment Protection and Conservation Act B.E.2535. The Saraburi Industrial Park, where our subsidiary, JCY HDD Thailand currently operates, has an existing waste treatment facility which treats the waste water of the manufacturing facilities within the aforesaid industrial park.