Entry Into Oil And Solvent Recycling Business Using In-House Proprietary Membrane System
Hyflux Ltd (the "Company") is pleased to announce that its wholly owned subsidiary, Eflux Singapore Pte Ltd, has entered into an agreement to acquire 51% equity in SK Oilchem Management Pte Ltd (SK Oilchem), a Singapore-incorporated private exempt company.
Currently, SK Oilchem has operations in Singapore licensed to collect and process new and used oil in Singapore. Such oil includes lubricating, fuel, vegetable and other oils. The Company will be supplying its proprietary membrane plant to SK Oilchem for recovery of the various types of used oil.
The Company plans to invest up to S$70 million in phases in building an advanced membrane-based, state-of-the-art facility for used oil recovery. The investment return is expected to exceed 20%.
Commenting on this investment, Ms Olivia Lum, Group CEO and President, said, "We are delighted to team up with SK Oilchem to develop this business. With this business partnership, the joint venture will have access to sources of used oils and outlets for recovered oil as well as advanced treatment technology. For the Company, we are able to shorten the time to market for our membrane based oil processing technology."
Many industrial processes including those in the marine, petrochemical, power, automobile, construction and airlines industries generate large quantities of used oil. Such oil is currently classified as toxic industrial material due to presence of heavy metals and aromatic compounds. Disposal is therefore under stringent regulatory control. However, used oil contains over 90% of base oil that can be recovered as a high value resource.
On the Company's technology, Ms Lum continues, "Through our R&D efforts, we have developed a proprietary membrane system for treatment of used oil that offers competitive advantages over conventional technology – is environmentally friendly, energy efficient, chemical-free and cost effective. In addition, our technology gives high recovery efficiencies and high product quality. We foresee a continued strong market for oils, given the world's insatiable hunger for energy and the escalating price of crude oil."
This investment is in line with the Company's strategy to continue to apply its membrane technology in the industrial sector.
From this platform, the company intends to further apply its cutting edge proprietary membrane technology in the recovery of other used chemicals including spent solvents.
By order of the Board
Lim Kim Seng