United Envirotech secured $59m deal in China

Its year-to-date new contract wins surged to Rmb451m.

According to DBS, United Envirotech has secured a Rmb286m (S$59m) contract with the municipal government of Hong Wei District, Liaoyang. 

For the TOT, UENV will acquire an existing 15,000 m³/day treatment plant for Rmb25m and upgrade it with a membrane bioreactor (MBR) system.

Here's more from DBS:

For the BOT portion, UENV will expand its treatment capacity by an additional 45,000 m³/day to a total capacity of 60,000 m³/day.

Upon completion, the plant will treat 30,000 m³/day of municipal wastewater and 30,000 m³/day of industrial wastewater.

The upgrading work will commence immediately and is expected to be completed by September 2014. The expansion work is expected to start in early 2014 and will take 12 months to complete.

Positive and material contract win. The construction of the BOT will add Rmb261m to EPC’s orderbook, lifting YTD new contract win to Rmb451m, above our Rmb400m assumption.

More importantly, the new capacity will add  6% to existing Phase 1 capacity, lifting UENV’s total treatment capacity to 1.1m m³/day.