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Wednesday, 6 July 2011, 11:50 HKT/SGT
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Source: Sembcorp Industries Ltd
Sembcorp Signs Agreements to Further Expand its Water Business in China

SIWW, Singapore, July 6, 2011 - (ACN Newswire) - Sembcorp is pleased to announce that its wholly-owned subsidiary, Sembcorp Utilities, will be signing three memoranda of understanding (MOU) to explore further expanding its water business in China during the Singapore International Water Week's (SIWW) China Business Forum to be held later this afternoon. Earlier in the week on July 3, Sembcorp also signed a MOU with the Xinmin government.

- MOU for a new water reclamation plant in the Tianjin Lingang Industrial Area

The first MOU will be signed between Sembcorp and Tianjin Lingang Industrial Area (TLIA) Construction and Development Co to explore forming a joint venture to build, own and operate a 12,000 cubic metres per day water reclamation plant in the TLIA. The new facility is expected to reclaim effluent from Sembcorp's existing industrial wastewater treatment plant in TLIA as well as reservoir into high grade industrial water and demineralised water for supply to industrial customers in TLIA. Managing the entire water cycle in an integrated manner, from the treatment of wastewater, to water reclamation and water supply, this integrated closed loop approach of providing total water solutions minimises liquid discharge and conserves precious water resources. The MOU will be signed by Alan Yau, Chief Executive Officer of Sembcorp China and Yin Jigang, General Manager of TLIA Construction and Development Co.

- MOU for the acquisition of a municipal wastewater treatment plant and water reclamation plant in Qitaihe, Heilongjiang Province

Sembcorp is also looking to apply its total water management solutions in Qitaihe, in Heilongjiang province. It will be signing a MOU agreement with Harbin Wan Xing Long Co to explore acquiring a 50,000 cubic metres per day municipal wastewater treatment plant and a 40,000 cubic metres per day water reclamation plant. The water reclamation plant will be supplying water to a power plant owned by China Datang Corporation Renewable Power Co, one of the largest power producers in China. With these new facilities, Sembcorp, which currently has a 100,000 cubic metres per day municipal water treatment plant in Qitaihe, will be able to expand its product offerings to the city to encompass wastewater treatment and water reclamation. The MOU will be signed by Alan Yau, Chief Executive Officer of Sembcorp China and Wang Da Li, Chairman of Harbin Wan Xing Long Co.

- MOU for the acquisition of a municipal wastewater treatment plant in the Yanjiao National High Tech Industrial Development Area, Hebei Province

Sembcorp will sign the third MOU with Yanjiao National High Tech Industrial Development Area Administration Committee to explore acquiring a 50,000 cubic metres per day municipal wastewater treatment plant and its associated network in the Yanjiao National High Tech Industrial Development Area in Hebei Province, where Sembcorp currently owns and operates a 70,000 cubic metres per day municipal water facility. Alan Yau, Chief Executive Officer of Sembcorp China will sign the agreement with Lu Jinli, Deputy Director of Yanjiao National High Tech Industrial Development Area Administration Committee.

- MOU for a new water treatment plant in Xinmin, Liaoning Province

Earlier in the week on July 3, Sembcorp also signed a MOU with the Xinmin government to explore building a 120,000 cubic metres per day water treatment plant for municipal and industrial use in the new industrial zone of Xinmin City, Liaoning Province. The new plant will complement Sembcorp's existing municipal water facility in Xinmin City.

The MOU was signed by Alan Yau, Chief Executive Officer of Sembcorp China and Wang Hong Wei, Deputy Mayor of Xinmin Government.

Commenting on Sembcorp's business expansion in China, Alan Yau, Chief Executive Officer of Sembcorp China, said, "China is experiencing strong growth in water demand due to increasing industrialisation and urbanisation. With our track record, Sembcorp is well positioned to provide sustainable water solutions to China. We are excited about these opportunities for growth and are keen to enhance Sembcorp's existing presence in China."

The enthusiasm of the government and partners to explore further cooperation with us is a testament of their confidence in Sembcorp's ability to deliver total water solutions in these water stressed regions of China. We are confident that Sembcorp will continue to grow from strength to strength in China, and that we would also be able to bring our expertise to other fast developing countries globally."

In China, Sembcorp currently has water and wastewater treatment operations in 12 cities across nine provinces. Its range of total water solutions includes wastewater treatment, water reclamation, desalination and water supply for both industrial and municipal clients. To further cement Sembcorp's commitment to growing its presence in China, Sembcorp Utilities has also recently established a wholly-owned holding company in Shanghai, Sembcorp (China) Holding Co, to be its regional headquarters.

About Sembcorp Industries Ltd

Sembcorp Industries (SGX:SCI,SCIL) is a leading energy, water and marine group operating in six continents worldwide. With facilities with 5,600 megawatts of gross power capacity and over six 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 developer of integrated townships and industrial parks. The Group has total assets of over S$11 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 and several MSCI indices. For more information, please visit www.sembcorp.com.

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

Crystal Low (Ms)
Executive
Group Corporate Relations
DID: +65 6723 3165
Email: [email protected]


Source: Sembcorp Industries Ltd

Topic: Contract Awarded
Sectors: Water, Environment
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