With an investment of RMB62 million, Sembcorp will hold an 80% stake in joint venture, Qinzhou Sembcorp Water Co. The remaining 20% stake will be held by Guangxi Qinzhou Linhai Industrial Investment Co., which is wholly owned by the QEDZ Administrative Committee.

Under the terms of the agreement, Qinzhou Sembcorp Water Co. will have 50 years concession rights to provide wastewater treatment and reclaimed water to customers in the QEDZ, Guangxi Province, China.

Mr Jeffrey Chen, CEO of Sembcorp’s operations in China said: “This project is the first to mark the extension of Sembcorp’s water business into southern China and is a significant milestone for us. With Sembcorp’s successful track record in the Yangtze River Delta as well as in the north and northeast, we are well-placed to support the development of this growing industrial site in the south, which has been earmarked for development into an important petrochemical hub in the region.”