SembCorp Expands Presence In Nanjing Chemical Industrial Park With Majority Stake In Upcoming Water Treatment Faclity

China, Nov 18, 2005

SembCorp Utilities (SembUtilities), a wholly-owned subsidiary of SembCorp Industries, has acquired 70 per cent of NCIP Water Industry Company Ltd, an existing equity joint venture to build, own and operate a 100,000 tonnes per day water treatment facility in Nanjing Chemical Industry Park (“NCIP”). The total cost of the project is expected to be US$19 million.

Upon acquisition, the joint venture will be renamed NCIP SembCorp Water Company Ltd, in which the remaining 30 per cent stake will be held by NCIP Utilities Company Ltd (“NCIPUC”). 

This acquisition will be SembUtilities’ second investment in the Park.  Its first investment in NCIP was a 12,500 tonnes per day wastewater treatment facility, which started operations in July this year. 

Under a Concession Agreement with NCIP Administrative Committee, the joint venture will enjoy exclusive rights to supply industrial water to investors in the Park. The facility is targeted to begin operations in 2007. 

Mr Ho Nee Sin, CEO of SembCorp Utilities’ China headquarters said: “This investment will allow us to broaden our integrated utilities service offerings within the NCIP beyond wastewater treatment. It enforces our strategy to build on our beachhead in Nanjing and to develop ourselves into an integrated utilities provider in the Park. In this, we will leverage on SembCorp’s core competency in supplying integrated utilities to petrochemical and chemical hubs.”

This investment will not have a material impact on the earnings per share and net tangible assets per share of SembCorp Industries for the financial year ending December 31, 2005.

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For media and analysts’ enquiries, please contact:

Lim Siew Khee
Group Corporate Relations
SembCorp Industries
DID: (65) 6723 3076
FAX: (65) 6822 3240

About SembCorp Utilities

A leading industrial utilities and site services provider, SembCorp Utilities offers process industry MNCs a range of fully integrated industrial site services, including natural gas, power, steam, cooling water, high grade industrial water, wastewater treatment and chemical waste incineration. 

SembCorp Utilities has established facilities serving chemical hubs in Singapore and the United Kingdom, and its coverage expands to countries such as China and Vietnam.  In China, the company is replicating its cogeneration and centralised utilities capabilities in major chemical industrial parks in Shanghai, Nanjing and Zhangjiagang.  SembCorp Utilities is also a leading offshore turnkey contractor for oil and gas upstream fixed platforms and floating production facilities.  

SembCorp Utilities is wholly owned by SembCorp Industries, Asia’s foremost engineering services group, who is listed on the mainboard of the Singapore Exchange.

About Nanjing Chemical Industrial Park

Nanjing Chemical Industrial Park (NCIP) is located on the northern bank of Yangtze River in the territory of Luhe District in Nanjing, the capital city of Jiangsu province.  The total planned area of NCIP is 101 square kilometres, in which Yangtze Petrochemical Co and Yangtze-BASF Integrated Petrochemical Project occupies 10 square kilometres.

NCIP was accorded the status as State Level Petrochemical Park on 7 January 2003.  As the second state-level chemical industrial park in China after Shanghai Chemical Industrial Park, the NCIP Administrative Committee has the authority to approve projects of investment amount up to US$100 million. 

The development in NCIP focuses on six areas: petrochemical and natural gas derivatives, basic organic chemical feedstock, fine chemicals, polymers, life sciences and pharmaceuticals, and new chemical materials.  NCIP has shown great potential to grow into a major chemical hub in China over the next few years.

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