JGC and Hyflux to collaborate on water and desalination projects

Hydrocarbon engineering company JGC Corporation of Japan and NewSpring Utility Pte Ltd, a wholly-owned subsidiary of Singapore-based membrane technology company Hyflux Ltd, signed a joint venture agreement on 22 December 2009 to develop greenfield water projects including desalination in China.

The newly formed 50:50 joint venture, to be called HJ NewSpring Ltd will be the investment holding vehicle for developing, investing and managing such water projects in China.

The joint venture's investment portfolio will initially comprise projects that are at the development and incubation stage, such as the Tianjin Dagang Seawater Desalination Plant, China's largest seawater desalination plant. The company intends to expand the designed capacity of the plant from 100,000m³/d currently to 150,000m³/d.

The Hyflux Group will continue to provide the engineering, procurement and construction services for the proposed expansion. The management consultancy, operation and maintenance services will be jointly provided by Hyflux and JGC.

HJ NewSpring will also grant Hyflux Water Trust rights of first offer and rights of first refusal for the project.

The chairman emeritus of JGC Group, Yoshihiro Shigehisa said, "I am convinced that Hyflux and JGC will jointly be able to commence water business in the very near future in the Middle East and North Africa region where JGC has a long track record of plant construction as well as regional offices."

Commenting on the signing, Hyflux's group CEO Olivia Lum said, "This new platform will enhance Hyflux's ability to invest in water infrastructure projects in China, where demand for clean and affordable water continues to be on an uptrend."

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