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Sembcorp Signs Joint Venture Agreement for Industrial Wastewater Treatment in China's Jiangsu Province

June 06, 2012

- Project gives Sembcorp exclusivity as provider of industrial wastewater treatment within an industrial park

- Anchor customer secured under a 15-year contract

Sembcorp Industries (Sembcorp) is pleased to announce that its wholly-owned subsidiary, Sembcorp (China) Holding Co, has entered into a joint venture agreement with Chinese partner, Jiangsu Province Lvsi Coastal Economic Zone Development & Construction Co (Lvsi D&C) to build, own and operate an industrial wastewater treatment plant in the Qidong Lvsi Port Economic Development Zone (Qidong Lvsi EDZ) in Jiangsu province.

Under the agreement, Sembcorp (China) Holding and Lvsi D&C will incorporate a joint venture company in China with a combined investment of RMB80 million (approximately S$16 million). Sembcorp will own a 95% stake in the joint venture company while Lvsi D&C, which is wholly-owned by the Qidong Lvsi EDZ Administration Committee, will hold the remaining 5%.

The industrial wastewater treatment plant will have a design capacity of 10,000 cubic metres per day and will be capable of treating multiple streams of high concentration industrial wastewater with chemical oxygen demand (COD) of up to 1,000 milligrammes per litre. After the start-up, the plant is expected to have an initial capacity of 5,800 cubic metres per day. The facility is located in the Petrochemical & New Materials Industrial Park, a 12-square kilometre park within the Qidong Lvsi EDZ, which is a new petrochemical industrial zone in Jiangsu province.

Expected to be completed by end 2013, the plant will provide industrial wastewater treatment services to its anchor customer, China National Chemical Engineering Group (CNCEG), under a 15-year contract which Sembcorp has secured. CNCEG is a state-owned enterprise listed on the Shanghai Stock Exchange.

This project gives Sembcorp exclusivity as the provider of industrial wastewater treatment within the Petrochemical & New Materials Industrial Park. This new facility will complement the Group’s existing water operations in Jiangsu province, where Sembcorp will now have a presence in four locations, including Zhangjiagang, Nanjing and Yancheng.

Mr Tang Kin Fei, Group President & CEO of Sembcorp, said, “We are excited to embark on this new project in Qidong, to offer our expertise in complex industrial wastewater treatment to customers in the Petrochemical & New Materials Industrial Park and to support the growth of the industrial park. We are pleased to have secured China National Chemical Engineering Group as our anchor customer and look forward to serving them and other new customers setting up operations in the industrial park.

“We are truly honoured to be chosen by the Qidong Lvsi EDZ Administration Committee to partner them in this project. We look forward to working closely with them and the local government to deliver the project successfully.”

The signing ceremony took place earlier today in the presence of Singapore Consul-General in Shanghai Mr Ong Siew Gay, government officials from Nantong city and Qidong city as well as delegates from International Enterprise Singapore. The agreement was signed by Mr Alan Yau, Chief Executive Officer of Sembcorp (China) Holding and Mr Hua Wei, Chairman of Lvsi D&C.

With this facility, Sembcorp has an established presence in water and wastewater treatment in 13 cities across nine provinces in China, serving both industrial and municipal customers.

The above transactions are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.

- END -

For media and analysts’ queries please contact:

Jody Phang (Ms)
Group Corporate Relations
DID: +65 6723 3180
Email: [email protected]

Melissa Yee (Ms)
Group Corporate Relations
DID: +65 6723 3326
Email: [email protected]


Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities with over 5,600 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.

The Group has total assets of over S$12 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.

Note to Editors: 
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 brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.