Mitsui, Hyflux Form JV for Chinese Water Projects

Mitsui and Hyflux have formed a 50-50 joint venture, called Galaxy NewSpring, to serve as a vehicle for investing, developing and managing water projects in China.

Galaxy NewSpring plans to acquire four water treatment plant operation assets owned by Hyflux, and 18 water treatment plant operation assets in China.

The total acquisition includes nine tap water treatment plants, 11 wastewater treatment plants and two water recycling plants in eight provinces of China, which will be purchased for approximately JPY20bn ($230m).

The total designed capacity upon completion of the acquisition is 745,000m3 per day (825,000m3 per day after expansion).

The JV is expected to help Japan based Mitsui, along with Singapore based Hyflux, tap into the water business in China.