United Envirotech to acquire Singapore membrane-maker
Singapore's United Envirotech Ltd (UEL) is to acquire its own membrane manufacturing capability by spending S$ 293.4 million (US$ 231 million) on a 100% stake in Memstar Pte Ltd, a wholly owned subsidiary of Memstar Technology Ltd, also of Singapore, plus certain assets.UEL provides water treatment solutions using its proprietary advanced membrane technologies, such as membrane bioreactor (MBR) and continuous membrane filtration (CMF) technology. It has designed and built several of the largest wastewater treatment plants in Asia using MBR technology.
Memstar manufactures and supplies polyvinylidene fluoride hollow-fibre membrane and membrane products, with a global presence. It has strong research and development (R&D) capabilities and manufacturing facilities in Singapore and China.
Memstar's membrane products have been used extensively by UEL in its water and wastewater treatment projects. The acquisition will make the combined entity a vertically integrated water solutions provider with enhanced competitiveness to capture the opportunities in the fast‑growing membrane‑based water and wastewater treatment industry.
Dr Lin Yucheng, chairman and CEO of UEL said, "The transaction marks a new milestone for both companies. Memstar has been a long-term supplier and partner of UEL, and we believe that the combination of the two companies will ensure higher quality water treatment solutions and sharpen our competitive edge to give better service and bring better value to our customers. We look forward to working closely with the Memstar management team to capture the enormous growth opportunities, particularly in China's environmental and water treatment sector."
Dr Ge Hailin, CEO of Memstar commented, "We are delighted by the combination of the two companies. I strongly believe that this transaction will create a win-win situation for both UEL and Memstar. Our membrane manufacturing business will benefit from UEL's strong customer networks and extensive water plant portfolio in China and we can significantly strengthen UEL's R&D capabilities especially in the fast growing membrane-based water treatment market."
The transaction will be subject to the approval of the shareholders of both UEL and Memstar.