|all articles latest | past | articles by topics | search wildnews|
wild news on wildsingapore
Times 16 Oct 07
Hyflux to build used-oil recycling plant in Vietnam
Joint venture to act as springboard for expansion into region
By Conrad Tan
HYFLUX has entered into a joint venture to build a used-oil recycling plant in Vietnam, said the water treatment company yesterday. It is expected to pave the way for further expansion in the region.
Its wholly owned subsidiary, Eflux Singapore, has signed a joint venture agreement with Success Blossom Environment Vietnam Joint Stock Co (SBEV) to invest US$10.5 million in the plant to be built near Hanoi.
The plant will collect, treat and turn used oil into high grade base oil for sale in Vietnam and other export markets such as Laos and Cambodia, said Hyflux.
Eflux will hold 60 per cent of the joint venture company, and SBEV the rest.
SBEV is itself a joint venture between the Success Blossom group of companies, which offers products and services to the petroleum trading and bunkering business in Asia, and Vietnam's Van Dao group, which manufactures and trades fuel and lubricants.
Hyflux said the Van Dao group is the only company in Vietnam with a nationwide licence from the local government to collect and treat industrial waste, including used oil.
Hyflux said it will be the technology provider for the joint venture, and its subsidiary will be the project manager responsible for supervising the design, engineering, construction and maintenance of the plant.
Its share price closed 10 cents or 2.9 per cent higher at $3.60 yesterday.
The plant, located in the Phu Nghia Industrial Park in the Ha Tay province, will have the capacity to process and recycle up to 12,000 tonnes of used oil a year.
The Vietnam plant will be Hyflux's sixth used-oil recycling centre. The company is already building similar centres in Singapore, China, India and Saudi Arabia.
The latest joint venture is expected to open doors for Hyflux's expansion into other parts of South-east Asia, said group chief executive and president Olivia Lum. 'Hyflux will continue to source for suitable partners globally to realise the potential of this business.'
The formation of the joint venture is subject to the approval of Vietnamese authorities, said Hyflux. It said the transaction is not expected to have a material impact on the group for its current financial year.
Related articles in Singapore: reduce, reuse, recycle
|News articles are reproduced for non-profit educational purposes.|
website©ria tan 2003 www.wildsingapore.com