CITIC Envirotech Ltd awarded an RMB 198 million (SGD 42 million) project to upgrade 200,000 m3/day Gaoyang wastewater treatment plant using MBR technology

CITIC Envirotech Ltd has announced it has  been  awarded  a  project  by  the  local  government  of Gaoyang  County,  Hebei  Province,  PRC,  to  upgrade  an existing  200,000  m3/day industrial wastewater treatment plant ('Gaoyang WWTP') for RMB 198 million (SGD 42 million).

Gaoyang WWTP serves the textile and dye companies located in the largest print and dye industrial  park  in  the  PRC,  which  provides  more  than  70%  of  China’s print  and  dye supplies. The industrial park is also one of the 18 sites in China to pilot-test the 'Circular Economy',  an  initiative  launched  by  China’s National  Development  and  Reform Commission ('NDRC') in 2006 with the objective of promoting sustainable economic growth by  creating an economic structure to  achieve close-loop flow of resources and efficient management of environmental impacts.  NDRC has articulated its intention to gradually expand the Circular Economy to the whole country by 2020.

CEL acquired the Gaoyang WWTP in April 2015 and the plant is currently operating at full capacity. The upgrading project is needed because the discharge standard applicable has been raised from Grade 1B to Surface Water Quality  Grade V. CEL’s proprietary Membrane Bioreactor (MBR) technology will be used for the upgrading project.

The Company believes that the more stringent discharge standards and incentives to turn wastewater  into  resources  will  amplify  the  many  advantages  of  MBR  technology compared  to  other  conventional  technologies.  As  an established  solution  provider  in industrial  wastewater  treatment,  the Company is confident that there will be more opportunities for such upgrading projects in China.

The Company has incorporated a 100% owned subsidiary known as United Envirotech Water  Resource  (Gaoyang)  Co.,  Ltd  with  a  registered capital  of  RMB  250  million to undertake the Gaoyang project.

The project will commence immediately and will be completed by December 2016.

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