United Envirotech acquires Hebei firm

United Envirotech Limited is acquiring a wastewater treatment company in Hebei, China for 500 million yuan (S$109 million).

The company, called Bishui Lantian, has a plant with a capacity of 200,000 cubic metres a day, and a recycling plant with a capacity of 20,000 cubic metres a day. It has also acquired land for a new 60,000 cubic metre/day wastewater treatment plant.

Bishui Lantian is located in Gaoyang county, a major textile centre which produces a third of China's towels, blankets and wool yarn.

Besides adding significantly to United Envirotech's current capacity, the acquisition will also enable the firm to penetrate the wastewater treatment market in Hebei, it said.

The firm plans to fund the acquisition through internal resources, bank financing and its medium-term note programme.

The counter closed 3 per cent, or 0.5 cent, higher at S$1.65 on Wednesday, before the announcement.