SINGAPORE - Sembcorp Industries has signed a joint venture agreement to buy and upgrade a wastewater treatment plant in China's Jiangsu province, it said on Tuesday.
A unit of the Singapore-listed energy, water and marine group will take an 80 per cent stake in the joint venture, while Shenghai Wastewater Treatment Plant will hold the remaining stake.
Shenghai Wastewater is wholly-owned by the Lianyungang Lingang Industrial Area Administration Committee. The plant is located in Lianyungang Lingang Chemical Industrial Park.
The upgrading is targeted for completion by the end of next year and the improved plant will have a capacity of 20,000 cubic metres a day.
The project will cost 130 million yuan (S$26.1 million), which will be funded through a mix of equity and borrowings.
This is the first industrial park that will have its water management capabilities upgraded by Sembcorp under the group's collaboration with the Jiangsu Environment Protection Department.
Sembcorp China chief executive Alan Yau said the company looks 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," he added.
Sembcorp's industrial water and wastewater treatment business currently serves 11 industrial sites in China, including Nanjing Chemical Industrial Park and Zhangjiagang Free Trade Port Zone in Jiangsu province.