The Straits Times / The Business Times News on Hyflux

Hyflux unit wins 3 deals in China worth 340m yuan

March 15, 2007
The Business Times

WATER-TREATMENT specialist Hyflux said yesterday that one of its units has won three contracts in China, worth 340 million yuan (S$67 million).

The water-treatment projects were awarded to Hyflux Utility Ltd (HUL), wholly owned by SinoSpring Utility Ltd, which is an 80 per cent-owned subsidiary of Hyflux.

The first project is a water clarification plant in the north development zone of Dafeng City in Jiangsu Province. HUL has been granted a 30-year concession by the local government to design, construct, operate and maintain the plant. The plant, with an estimated value of 35 million yuan, is expected to be completed by mid-2008. Hyflux said this is the second water clarification plant project which HUL has secured in Dafeng City. Its first one is under construction.

Under another 30-year concession agreement, HUL will also build and run a water clarification plant in Zunhua City, Hebei Province. The estimated project value is 120 million yuan and the plant is expected to be completed by the end of next year.

The third contract is a waste water treatment and water recycling plant in Beichen, Tianjin City, which HUL has an exclusive 30-year concession to design, construct, build, operate and maintain. The estimated project value for the first phase of the project is 185 million yuan. It is due for completion in early-2008. For all three contracts, HUL has been granted the first right to negotiate for the extension of the concession upon its expiry.

Hyflux said the new China projects will be funded from the group's existing term loan facilities and are not expected to have a material financial impact in the current financial year.

Hyflux recently reported a 63 per cent fall in net profit for 2006 full year to about $17 million, with revenue dipping one per cent to $129.8 million.