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Federal clinches waste-water treatment contract in China
Federal clinches waste-water treatment contract in China

(2008-04-08)

FEDERAL International (2000), through a consortium, has won a contract to provide centralised waste-water treatment services to factories in China's Sichuan PanZhiHua Vanadium-Titanium Industrial Park.

The consortium comprises Federal's 65 per cent-owned subsidiary Federal Environmental & Energy and IESE Water (Asia). Federal Environmental & Energy will be involved in project management and equipment procurement for the new waste-water treatment plant.

The build, operate and own project will be undertaken by Federal Environmental (China-PZH), in which Federal will have an effective 61.75 per cent stake. Federal Environmental (China-PZH) will be incorporated in China with its paid-up capital to be increased progressively to US$4.5 million, said Federal.

The 27-year, three-phase project is said to be China's largest acidity waste-water treatment project. On completion of all the phases, the plant will be able to process 100,000 tonnes of waste-water daily. The investment cost of this plant is 280 million yuan (S$55.2 million).

Construction starts this month and the first phase of the project is expected to be completed by year-end. Federal expects the first phase to generate annual revenue of 100 million yuan and to be able to process 25,000 tonnes of waste-water per day. The investment is worth about 106 million yuan. Federal Environmental & Energy will be involved in project management and equipment procurement for the new waste-water treatment plant.

'We are excited to have made this breakthrough in China's environmental management industry,' said Federal's executive chairman and chief executive KK Koh. 'We are delighted to provide environmental management solutions and contribute towards environmentally friendly activities in China. Given the booming environmental management industry in China, going forward, we intend to build up our portfolio of environmental projects.'

Federal, a provider of engineering and procurement services to the oil, gas, energy and infrastructure industries, said its investment in the project will be funded internally and through bank borrowings. It believes the investment will not have a material impact on its earnings per share or net tangible assets for the year ending Dec 31, 2008.

《The Business Times》


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