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Sembcorp Signs Heads of Agreement to Expand China Water and Centralised Utilities Business to Southern China

June 26, 2008

Sembcorp, Singapore’s largest water company, has signed a Heads of Agreement (HoA) to form a new beachhead for its centralised utilities business in Qinzhou, Guangxi Province, China.

The HoA between Sembcorp and the Qinzhou municipal government establishes an understanding for the joint development of centralised utilities projects to serve industrial customers in the Qinzhou Port Economic Development Zone (QEDZ). This includes the development of water supply and wastewater treatment projects, water recycling projects, as well as the development of other centralised utilities services.

With this, QEDZ is set to become Sembcorp's first beachhead in southern China.  The Group's utilities business currently has operations near the Yangtze River Delta - in Shanghai, Nanjing and Zhangjiagang - as well as in the northern and northeast cities of Tianjin and Shenyang.

The HoA, inked at the Singapore International Water Week’s China Business Forum this morning, was signed by Dr. Jeffrey Chen, CEO of Sembcorp China, and Mr Huang Yi, Assistant Secretary General of Qinzhou Municipal Government and Director General of Qinzhou Municipal Investment Promotion Bureau.

For enquiries, please contact:
Fock Siu Ling (Ms)
PR Counsel
Group Corporate Relations
DID: +65 6723 3152
Email: [email protected] 

Sembcorp Industries Ltd is a leading utilities and marine group. The Group provides centralised utilities, energy and water to industrial and other customers in Singapore, the United Kingdom, Asia and the Middle East. It is a global leader in marine and offshore engineering and also a provider of environmental and industrial park management services in the region. Sembcorp has total assets of over S$8.7 billion and employs more than 6,700 employees. Listed on the main board of the Singapore Exchange, Sembcorp is a component stock of the Straits Times Index and several MSCI indices.

Note to Editors: 
Following a recent company rebrand, please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brandname in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.


Competitive and technologically advanced water solutions are core to Sembcorp’s utilities offering. These capabilities have been successfully exported to key overseas markets. Today, Sembcorp owns and operates wastewater treatment, water recycling and water treatment facilities in Singapore, China, the United Kingdom and the United Arab Emirates (UAE). Globally, Sembcorp manages water facilities exceeding four million cubic metres per day in capacity, both in operation and under development, including approximately 64 million gallons per day (293,000 cu m per day) of high grade recycled water. Sembcorp’s industrial wastewater treatment facilities worldwide have an existing combined capacity of over 30 million gallons per day (140,000 cu m per day) in operation and under construction.

Sembcorp’s broad expertise in industrial wastewater treatment encompasses the ability to treat highly concentrated wastewater as well as high salinity wastewater using advanced biological treatment processes. The company also has desalination capabilities of 100 million gallons per day (450,000 cu m per day), within its combined water-and-power plant in Fujairah, UAE and has good experience in both reverse osmosis and thermal processes for seawater desalination. Besides wastewater treatment and desalination, Sembcorp’s water services include providing various industrial grade waters to chemical and petrochemical clients in petrochemical and chemical zones. These include high grade industrial water, demineralised water, seawater, cooling water, raw water and fire-fighting water. 

Qinzhou City is a major port city of Guangxi Province.  Strategically located in southwest China between Guangdong, Guizhou, Hunan, and Yunnan provinces, Guangxi province borders Vietnam and serves as an important gateway linking China’s southwest to the Asia Pacific and the Pan-Beibu Gulf.  Qinzhou City has a land area of 10,800 km2, a coastline of 520.8 km and a population of over 3.5 million. It boasts a natural deep-water harbor with vast hinterland and abundant resources of land and freshwater.

Situated at the south coast of Qinzhou City, Qinzhou Port Economic Development Zone (QEDZ) is a provincial development zone set up in June of 1996. With jurisdiction over four communities and three villages, the development zone has a total area of 138 km2, and includes a 30 km2 petrochemical plant, a 20 km2 downstream industrial area, the 10 km2 Qinzhou Free Trade Port Area and the 78 km2 Jinguang Industrial Park. The QEDZ aims to focus on the six pillar industries of petrochemical industry, energy, paper manufacturing, grain and oil processing, metallurgy and shipbuilding.