United Envirotech has signed a deal with Guangan Municipal Government and West Guangan Jean City Investment Management Co to provide industrial water supply, wastewater treatment and wastewater recycling to West Guangan Jeans and Textile Commerce and Technology Park in Guangan City, Sichuan Province, China.

The park is expected to house over 1,000 enterprises from various parts of the jeans production value chain.

Under the terms of the agreement, UEL will form a 90-10 joint venture with the local firm to undertake build-operate-transfer projects.

Total investment for the first phase of the project is expected to be about 160 million yuan (S$33 million), which will be funded by the United Envirotech's internal resources.

Chairman and chief executive Lin Yucheng said "The trends of costal industries moving inland and the tightening of environmental regulations have created tremendous demand for industrial water treatment solutions in China.

"Our advanced membrane technology, track record and funding capability have put us in a favourable position to capture many such opportunities."

The project is United Envirotech's third major investment in textile industrial water treatment after its investments in Changyi City in Shandong and Siyang City in Jiangsu.