Sembcorp subsidiary wins $16m China wastewater plant contract

It will construct and run an industrial treatment facility for its joint venture Chinese partner in Jiangsu province.

"Sembcorp Industries' 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," said Sembcorp in a note to the exchange.

"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 whollyowned by the Qidong Lvsi EDZ Administration Committee, will hold the remaining 5%," it said.

"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," it added.

"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," it said further.