Sembcorp Industries has signed a joint venture agreement to acquire and upgrade an existing wastewater treatment plant in Lianyungang Lingang Chemical Industrial Park (LCIP) in Jiangsu province.

Under the agreement, Sembcorp’s wholly-owned subsidiary, Sembcorp (China) Holding Co, will hold an 80% stake in the joint venture, while Lianyungang Lingang Industrial Area Administration Committee’s wholly-owned company, Shenghai Wastewater Treatment Plant Co, will hold the remaining stake.

Sembcorp has been selected by the Jiangsu Environment Protection Department to improve industrial wastewater treatment operations at LCIP. The existing facility in the chemical industrial park, which is only able to treat low concentration wastewater, will be upgraded to one that is capable of treating high concentration industrial wastewater directly from source.

The upgrading is targeted to be completed by end 2015 and the enhanced industrial wastewater treatment plant will have a capacity of 20,000 cubic metres per day. The total project cost of RMB130 million ($26.1 million) will be funded through a mix of equity and borrowings.

The Jiangsu Environment Protection Department intends to collaborate with Sembcorp to utilise the company’s advanced industrial wastewater treatment solutions to manage industrial wastewater from multi-customers within chemical industrial parks in Jiangsu. The LCIP will be the first of the industrial parks to have its water management capabilities upgraded by Sembcorp under this collaboration.

Alan Yau, CEO of Sembcorp China, said, “This project leverages Sembcorp’s established capabilities and leading position in industrial wastewater treatment globally. We are honoured to be selected by the Jiangsu Environment Protection Department and are pleased to bring our expertise in industrial wastewater treatment to the Lianyungang Lingang Chemical Industrial Park. We also look forward to having this model replicated in other chemical industrial parks in Jiangsu. This will enable us to extend our solutions across the province and further cement our position as a market leader in industrial wastewater treatment in China.”

Currently, Sembcorp’s industrial water and wastewater treatment business serves 11 industrial sites in China, including important petrochemical and chemical sites such as Nanjing Chemical Industrial Park and Zhangjiagang Free Trade Port Zone in Jiangsu province.