ANNAIK, a steel products maker and engineering service provider, is investing up to 20 million yuan (S$4.2 million) for a new project by its subsidiary.
The group announced on Wednesday that ChangXing LiJiaXiang New Era Wastewater Treatment Co has been awarded additional service concession rights to construct and operate a wastewater treatment plant in LiJiaXiang town in China.
This is after ChangXing entered into an extension investment framework agreement with the municipal government of LiJiaXiang.
Construction is expected to be completed by October this year; ChangXing's concession rights will continue to subsist for 30 years from the start of the plant's commercial operation.
"The group's investment in the project will be funded by internal resources and bank borrowings, and is not expected to have any material impact on the net tangible assets or earnings per share of the group for the financial year ending Dec 31, 2016, although it is expected to contribute to the net tangible assets or earnings per share of the group for the financial year ending Dec 31, 2017," said AnnAik.