Sembcorp intensifies centralised utilities activity in China

Its project in Fushun Petrochemical and Fine Chemical Park is worth S$64.2m.

In a release, Sembcorp Industries announced the expansion of its centralised utilities business in China with its latest project in the Fushun Petrochemical and Fine Chemical Park, a 43-square kilometre park located within the Fushun Hi-tech Industrial Zone in Liaoning province.

Sembcorp will be investing a total of RMB326.6 million (equivalent to approximately S$64.2 million) to develop centralised utilities facilities to serve existing and new customers in the Fushun Petrochemical and Fine Chemical Park. The centralised utilities facilities will comprise a service corridor network as well as facilities for industrial water treatment and industrial water and firewater supply.

A concession agreement has been signed between Sembcorp’s wholly-owned subsidiary, Sembcorp (China) Holding Co, and the Fushun Government, which grants Sembcorp exclusivity as the provider of the service corridor network in the Fushun Petrochemical and Fine Chemical Park.

For the first phase, Sembcorp will be investing RMB76.0 million (approximately S$14.9 million) to develop a three-kilometre service corridor network, with completion expected in the first quarter of 2013.

At the same time, Sembcorp will embark on a water project in the Fushun Petrochemical and Fine Chemical Park. The company will acquire a portfolio of existing water assets from the local government and develop a new industrial water treatment plant and a 3.6-kilometre water pipeline at a total investment of RMB250.6 million (approximately S$49.2 million).

The new industrial water treatment plant will have an initial capacity of 22,500 cubic metres per day and is expected to be completed by 2013. Sembcorp will also be granted exclusivity to supply water to customers in the Fushun Petrochemical and Fine Chemical Park.

These facilities in the Fushun Petrochemical and Fine Chemical Park will complement the Group’s existing utilities operations in Liaoning province, where Sembcorp will now have a presence in three locations, including Shenyang and Xinmin.

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