Sembcorp Inks JV For Wastewater Project in PRC
Sembcorp Industries announced that its subsidiary, Sembcorp (China) has entered into a joint venture agreement with its Chinese partner, Jiangsu Province Lvsi Coastal Economic Zone Development & Construction. With a combined investment of Rmb80 million ($16 million), the joint venture will build, own and operate an industrial wastewater treatment plant in the Qidong Lvsi Port Economic Development Zone in Jiangsu Province, China. Under the agreement, both partners will form a joint venture company, of which Sembcorp will own a 95 percent stake. The industrial wastewater treatment plant will have a capacity of 10,000 cubic metres per day and will be capable of treating multiple streams of high concentration industrial wastewater. Tan Kin Fei, Sembcorp president and chief executive officer felt that the new project would present an opportunity for the company to offer its expertise in complex industrial wastewater treatment in the Petrochemical & New Materials Industrial Park while supporting the park’s growth.
Significance: The project will give Sembcorp exclusive rights as a provider of industrial wastewater treatment within the industrial park. The new facility will also augment the company’s existing water operations in Jiangsu Province.
Koon Secures RM12m Infrastructure Contract
Locally listed infrastructure construction company, Koon Holdings reported that it had secured a new infrastructure contract worth RM12 million ($4.9 million) in Johor, Malaysia. The contract would entail the supply and installation of shore protection works for the Independent Deepwater Petroleum Terminals in Pengerang Johor for 10 months. The main scope of works includes the trimming of sand slopes and the laying of geofabric and placement of stones. The terminals which will be built at an initial cost of RM1.9 billion, can store up to 1.3 million cubic metres of crude oil. The project will be built in four phases, with the first phase being reclamation work, where shore protection work is essential to prevent erosion of the surrounding areas of the petroleum terminals. Tan Thiam Hee, managing director and chief executive officer of Koon remarked that the contract win was testament of its accumulated experience and specialised equipment in reclamation projects. With the inclusion of the project, Koon’s construction order book stood at $122 million as at 6 June 2012.
Significance: While the value of the project is relatively small, the project win signals Koon’s ambitions to expand in its civil engineering and infrastructure presence beyond Singapore.
Oxley CEO Says No Equity Fund Raising Needed, Yet
In an interview with The Business Times, the chief executive officer of property upstart, Oxley Holdings said that he does not see a need to do cash raising as it sees a steady stream of project income and access to bank finance. Ching Chiat Kwong remarked that Oxley has been able to use internal resources and bank support, effectively dismissing market rumours of a potential fund raising exercise. Notably, Ching mentioned that Oxley has sold most of its properties and also have access to director’s loans to finance projects. To date, Oxley has sold 100 percent of the units in 11 out of 14 residential projects it has launched since 2011. Ching opines that total sales on Oxley’s books now stand at around $2 billion, with another $1.5 billion to be launched later this year. He also mentioned that Oxley is headed for an earnings explosion during the next two years as its residential projects come to completion.
Significance: Oxley intends to launch new projects from recent land acquisitions and bankings later this year and will expect these projects to fuel earnings growth well into the next decade.