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SIIC unit to take 51% stake in joint venture company for Shandong project
MAINBOARD-listed SIIC Environment Holdings has established a joint venture company (JVC) for a waste-to-energy project in Shandong, China, the water treatment and environmental protection firm announced on Tuesday morning.
The JVC - Shen County SIIC Environmental Energy Co - was set up via SIIC Environment's subsidiary, Shanghai Fudan Water Engineering Technology Co, with three other parties, namely World Prosperous Investments, Shanghai Nanyi Environmental Technology Company, and Shandong Sanding Company.
The JVC will be principally engaged in the investment, construction and operation of a waste to-energy project at the Circular Economy Industrial Park in Shen County, Shandong, with a designed capacity of 1,200 tons/day, SIIC Environment said.
It will also be incorporated with a registered capital of 105 million yuan (S$21.1 million), with SIIC Environment's subsidiary contributing 53.55 million yuan to take on a 51 per cent stake in the JVC.
This investment will be funded by the group's internal resources, and the establishment of the JVC is expected to contribute positively to the group’s performance going forward, SIIC Environment said.
Shanghai Nanyi Environmental will invest 25.2 million yuan for a 24 per cent stake in the JVC, while World Prosperous will put in 21 million yuan for a 20 per cent stake, and Shandong Sanding will invest 5.25 million yuan for a 5 per cent stake.
Shares in SIIC closed at S$0.36 apiece on Monday, down 5.3 per cent, or two Singapore cents.