SINGAPORE'S Sembcorp Industries has signed a joint-venture agreement to acquire and upgrade a wastewater treatment plant in China's Jiangsu province, thereby strengthening its presence in that region.
The company announced yesterday that it had been selected by the Jiangsu Environment Protection Department to improve industrial wastewater treatment operations at the Lianyungang Lingang Chemical Industrial Park (LCIP), where the plant is located.
Under the agreement, Sembcorp's wholly owned subsidiary, Sembcorp (China) Holding Co, will hold an 80 per cent stake in the joint venture, while Lianyungang Lingang Industrial Area Administration Committee's wholly owned company, Shenghai Wastewater Treatment Plant Co, will hold the remaining stake.
The facility in the chemical industrial park, which is only able to treat low concentration wastewater, will be upgraded to one that is capable of treating high concentration industrial wastewater directly from source.
Sembcorp said it was selected for this project "given its proven capabilities to treat multiple streams of complex industrial wastewater directly from customers to meet discharge standards, benefiting both customers and local governments".
The upgrading of the plant is targeted to be completed by the end of next year. The enhanced industrial wastewater treatment plant will have a capacity of 20,000 cubic metres per day.
Sembcorp said the total project cost of 130 million yuan (S$26.1 million) will be funded through a mix of equity and borrowings.
Alan Yau, CEO of Sembcorp China, said: "We look forward to having this model replicated in other chemical industrial parks in Jiangsu. This will enable us to extend our solutions across the province and further cement our position as a market leader in industrial wastewater treatment in China."
Separately, Sembcorp also announced yesterday that it has been named Asia's leading private sector developer, in the inaugural PFI Asia Best Practice 2014 citations launched by Project Finance International (PFI) - a project finance trade journal owned by Thomson Reuters. The citations recognise the region's leading government procurer and private sector developer, as well as the top bond deal, infrastructure deal, power deal, public-private partnership deal and renewables deal.
Sembcorp shares ended 7 cents down at $5.38.