Leader Environmental Technologies says it has secured a RMB56.5 million ($11.5 million) contract for the treatment and recycling of industrial wastewater at Shijiazhuang National Economic Development Zone in China’s Hebei province.

The Development Zone houses mainly bio-medical and related industries.

The contract was signed by the company’s wholly-owned subsidiary United Greentech (Tianjin).

Under the contract, the company provide technology, and supply and commission membrane system and key equipment to upgrade the current 100,000 m3/day wastewater treatment facilities.

This is to meet higher discharge standards and to reuse the treated wastewater in the Development Zone.

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The announcement was made after market hours on Jan 6, after the company’s share price spiked, prompting a query from the Singapore Exchange Regulation (SGX RegCo).

In response to queries regarding its trading activity on Jan 6, Leader Environmental Technologies’ chairman and CEO Lin Yucheng said the securing of the contract may have led to the unusual trading activity.

See: Leader Environmental Technologies draws SGX query on share price hike

Lin added that save for the announcement made on Dec 28, 2020, pertaining to the announcement of Lin’s appointment as chairman and CEO of the company, the company is unaware of any “other possible explanation”.

Commenting on the project, Lin says, “This prestigious project win is an endorsement of the Company as a leading membrane technology provider. It is a good start to the successful transformation of Leader into a technology-driven company focusing on sludge and industrial wastewater treatment.”

“Going forward, we are confident that we will be able to tap on the huge market potential for sludge and industrial wastewater treatment in China. China’s sludge treatment market has exceeded RMB 50 billion since 2017 and is expected to increase at a rate of 10% per annum. China’s industrial wastewater treatment was estimated to be worth RMB 1.3 trillion in its 13th Five Year Plan,” he adds.

As at 9.27am, shares in Leader Environmental Technologies are trading 0.1 cent lower or 0.8% down at 12.2 cents.