SINGAPORE (Feb 12): Dr Chong Weng Chiew, executive vice-president of CITIC Envirotech (CEL), sees his company being an immediate beneficiary of any move by China to raise its wastewater treatment standards. And, while its shares lagged the Straits Times Index by a long way over the past year, the integrated environmental solutions provider succeeded in clinching a steady flow of contracts recently.

In October last year, it secured a RMB4.6 billion ($968 million) project that includes upgrading a conventional 200,000 cu m per day municipal wastewater treatment plant (WWTP) into a 400,000 cu m per day underground WWTP and a land remediation project in Lanzhou city, Gansu. Then, on Nov 8, it announced two engineering, procurement and construction (EPC) projects in Fujian worth a total of RMB302 million. One project, valued at RMB247 million, was awarded by sewage treatment facilities company Fujian Haixia Environmental Protection Group Co to upgrade a 400,000 cu m per day conventional WWTP using CEL’s membrane bioreactor (MBR) technology. The other project involves upgrading a 40,000 cu m per day conventional textile industrial WWTP, also using MBR technology.

CEL was listed on the Mainboard of the Singapore Exchange in 2004 as United Envirotech. It expanded over the years and drew the backing of private-equity giant KKR in 2011. Chinese conglomerate CITIC became the largest shareholder in 2015, with a 54.9% stake in the company via a voluntary general offer. The second-largest shareholder is China Reform Fund Envirotech Co, which bought KKR’s 23.9% stake in 2016. Today, CEL is the largest Chinese water play on the SGX, with a market value of $1.7 billion.

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