Hyflux's China Subsidiary Wins S$24 Million Deal To Supply Membrane Process Plant For Medical Product Application
Hyflux Ltd ("Company") is pleased to announce that its wholly own subsidiary in China, Hydrochem Engineering (Shanghai) Co Ltd, has secured a contract to build a membrane-based treatment plant for the manufacturing facility of Shanxi Heyi Fine Chemical Industry Ltd, a fine and specialty chemical company, in Shanxi Province, China. The project, worth RMB$120,000,000 (S$24,000,000), is slated for completion by the first quarter of 2005.
Shanxi Heyi Fine Chemical Industry Ltd specializes in the manufacture and sale of medicinal products like abamectin. Its new manufacturing facility will have a production capacity of 160 tons per year.
Commenting on this project, Ms Olivia Lum said, "We are delighted that Shanxi Heyi Fine Chemical Industry Ltd has selected our membrane system to treat the process liquid stream in its state-of-the art plant. The selection of our membrane system is further evidence of the versatility and the cost-effectiveness of our membrane technology and process know-how. This will be our second largest industrial project and positions us to be a competitive player in this growing trend of bigger industrial jobs."
This project is expected to generate revenue of about S$15.6 million in the current financial year ending 31 December 2004 with the balance in 2005. It is premature to estimate the significance of the impact of this project on the Group's overall profitability in 2004 and 2005.
Submitted by Lim Kim Seng, Company Secretary on 30/06/2004 to the SGX