Hyflux Ltd and Mitsui & Co Ltd have signed a joint venture agreement to develop water projects in China.
The newly-formed 50:50 joint venture company, Galaxy NewSpring Pte Ltd, will invest, develop and manage projects in the growing water sector in China.
“This strategic partnership with Mitsui underscores the importance of the high-growth water sector in China to both companies. By combining our complementary strengths – Hyflux’s fully integrated water solutions and strong track record and experience in China, and Mitsui’s entrenched global network, comprehensive infrastructure services and robust capital structure – we form a powerful platform to accelerate investments in developing critical infrastructure to meet China’s needs for clean, safe and affordable water,” said Olivia Lum, group president & CEO of Hyflux.
“We are pleased to partner with Hyflux to collaborate on capturing the growth opportunities in China’s water sector and to share our considerable resources and experience in the development and operations of infrastructure projects worldwide towards the realization of our shared business goals in this vast market,” said Jun Aketa, general manager of First Projects Development Division at Mitsui.
Galaxy NewSpring’s initial project portfolio will comprise four water treatment plants that it will acquire directly from the Hyflux wholly-owned subsidiary, Spring China Utility Ltd, for US$53.1 million: Jiangxi Leping Water Treatment Plant; Anhui Mingguang Water Treatment Plant; Hunan Taoyuan Water Treatment Plant; and Liaoyang Gongchangling Water Treatment Plant.
The new joint venture company is also looking to delist the Hyflux Water Trust from the Singapore Exchange Securities Trading Limited. The Hyflux Water Trust is a global water business trust that provides investors with an opportunity to invest in water-related infrastructure assets in China, India, the Middle East and North Africa and other high-growth markets globally.