Citic Envirotech secures 1b yuan environmental project in Anyang City

CITIC Envirotech has secured a build-operate-transfer environmental project worth one billion yuan (S$208.6 million) in Anyang City in China's Henan Province, the environmental engineering company said on Thursday evening.

To undertake the project, Citic and its partner in the project - Fengzhu Textile Technology - will set up a project company with shareholdings of 90 per cent and 10 per cent respectively.

In a filing with the Singapore Exchange, the company said that it will be responsible for the design, construction and operation of a fully-integrated project which will include a wastewater treatment plant, a water purification plant, a water recycling plant, a cogeneration plant, a production factory and workers dormitory.

Citic added: "The project will commence from the third quarter of 2018 and will take two years to complete. The project comes with a service concession of 38 years and a 60 per cent minimum offtake by the government throughout the service concession period for wastewater treatment, water purification, water recycling and cogeneration."

Fengzhu Textile is a listed company in China that specialises in cotton spinning, dyeing and finishing, knitted fabrics and bobbin yarn production.

This is Citic's third investment in a fully-integrated project under its circular economy initiative. In 2016, it secured its first circular economy project.

Citic shares closed S$0.035 or 5.9 per cent lower at S$0.56 on Thursday before the announcement.