Sembcorp announced on 19 December 2013 that it would be developing a new industrial wastewater treatment plant in the Caofeidian Chemical Industrial Park in Hebei province, China.
The Singapore-based company has entered into an agreement through its wholly-owned subsidiary, Sembcorp (China) Holding Co, to set up an 80-20 joint venture with Tangshan Caofeidian Yongtai Industry Co, a wholly-owned entity of the Caofeidian Industrial Zone Administrative Committee.
The joint venture company, Sembcorp Caofeidian Water Co, will build, own and operate an industrial wastewater treatment plant to serve customers in the chemical industrial park. Targeted to begin operations in late 2015, this wastewater treatment facility will have an initial capacity of 10,000 m³/d and have advanced capabilities to treat high concentration industrial wastewater and high oil content industrial wastewater.
The joint venture has secured a 30-year exclusive concession agreement to provide wastewater treatment services within a 32 km² area in the chemical industrial park. In addition, it has already secured binding letters of intent from two key customers.
The joint venture's total investment in the project of around RMB 108.3 million (approximately US$ 17.8M) will be funded through a mixture of internal sources and external borrowings. Sembcorp's equity investment in the project of approximately RMB 35 million (US$ 5.8M) will be funded through internal sources.