SINGAPORE - Mainboard-listed United Envirotech Ltd (UEL) announced on Thursday that it had signed an investment agreement on March 25, 2015, with the Luntai Industrial Park Management Committee to design, build and operate for 30 years an industrial wastewater treatment plant in Luntai County, Xinjiang, China.
The wastewater treatment plant will serve a petrochemical industrial park in Luntai County, a county in the Xinjiang Uighur Autonomous Region. The 72 sq km industrial park is a major petrochemical hub located at the start of the 4,000 km "West-East Gas Pipeline", which is a massive project that transports natural gas from Xinjiang in the Western China to Shanghai in the Eastern China.
The total capacity of the treatment plant, to be developed over two phases, will be 100,000 cubic metres a day.
The total investment for the Phase 1 construction of the 50,000 cubic metres a day plant and the associated piping network is estimated to be 300 million yuan (S$66.1 million). The wastewater treatment plant will use UEL's advanced Membrane Bioreactor (MBR) technology.
Commenting on the project, Dr Lin Yucheng, chairman and CEO of UEL said: "This will be our first project in the Xinjiang region and when completed, our plant will be the first petrochemical MBR in Xinjiang."
"We believe that our MBR technology has huge potential in the industrialization and development of the water scarce western region of China. Wastewater treated using the MBR technology is fit for recycling, a big advantage compared to other technologies which will require additional treatment processes to achieve the same aim."
"Our excellent track record in petrochemical industrial wastewater treatment using MBR technology has given us a lead in breaking into this new region."
The project will commence immediately and is expected to be completed by the end of 2016.
The proposed investment is not expected to have any material financial impact on the net tangible assets per share and earning per share of the group for the financial year ending March 31, 2015.