06-06-2012

Sembcorp signs JV agreement for industrial wastewater treatment in China’s Jiangsu province

Sembcorp Industries is pleased to announce that its wholly-owned subsidiary, Sembcorp (China) Holding Co, has entered into a joint venture agreement with Chinese partner, Jiangsu Province Lvsi Coastal Economic Zone Development & Construction Co (Lvsi D&C) to build, own and operate an industrial wastewater treatment plant in the Qidong Lvsi Port Economic Development Zone (Qidong Lvsi EDZ) in Jiangsu province.

Under the agreement, Sembcorp (China) Holding and Lvsi D&C will incorporate a joint venture company in China with a combined investment of RMB80 million (approximately S$16 million). Sembcorp will own a 95% stake in the joint venture company while Lvsi D&C, which is wholly-owned by the Qidong Lvsi EDZ Administration Committee, will hold the remaining 5%.

The industrial wastewater treatment plant will have a design capacity of 10,000 cubic metres per day and will be capable of treating multiple streams of high concentration industrial wastewater with chemical oxygen demand (COD) of up to 1,000 milligrammes per litre. After the start-up, the plant is expected to have an initial capacity of 5,800 cubic metres per day. The facility is located in the Petrochemical & New Materials Industrial Park, a 12-square kilometre park within the Qidong Lvsi EDZ, which is a new petrochemical industrial zone in Jiangsu province.

Expected to be completed by end 2013, the plant will provide industrial wastewater treatment services to its anchor customer, China National Chemical Engineering Group (CNCEG), under a 15-year contract which Sembcorp has secured. CNCEG is a state-owned enterprise listed on the Shanghai Stock Exchange.

This project gives Sembcorp exclusivity as the provider of industrial wastewater treatment within the Petrochemical & New Materials Industrial Park. This new facility will complement the Group’s existing water operations in Jiangsu province, where Sembcorp will now have a presence in four locations, including Zhangjiagang, Nanjing and Yancheng.

Mr Tang Kin Fei, Group President & CEO of Sembcorp, said, “We are excited to embark on this new project in Qidong, to offer our expertise in complex industrial wastewater treatment to customers in the Petrochemical & New Materials Industrial Park and to support the growth of the industrial park. We are pleased to have secured China National Chemical Engineering Group as our anchor customer and look forward to serving them and other new customers setting up operations in the industrial park.

“We are truly honoured to be chosen by the Qidong Lvsi EDZ Administration Committee to partner them in this project. We look forward to working closely with them and the local government to deliver the project successfully.”