United Envirotech to acquire Chinese wastewater treatment plants

Singapore-based United Envirotech (UEL) has signed a sales and purchase agreement to acquire a water supply plant and a wastewater treatment plant in Shandong Province, China for CNY105m ($16.66m).

The company will invest a further CNY60m ($9.52m) to modify and upgrade the existing wastewater treatment plant using UEL’s membrane technology.

As part of the deal UEL will form a joint venture company with the existing shareholders of the plants, in which it will hold a 70% stake.

The water supply plant has design capacity of 40,000m³/day and is expected to commence operations in the second quarter of 2012.

The wastewater treatment plant, which also has a design capacity of 40,000m³/day and treats industrial wastewater from textile firms located in Changyi City’s industrial parks, is currently operating at near full capacity.

The water projects will be funded by the proceeds from the convertible bond issue to Kohlberg Kravis Roberts, internal resources and bank financing.

Image: The water plants are being built in China’s Shandong Province. Photo: Fanghong