SINGAPORE (Mar 19): SIIC Environment Holdings is establishing a RMB105 million ($21.1 million) joint venture (JV) company, Shen County SIIC Environmental Energy, to construct and operate a waste-to-energy (WTE) project with a capacity of 1,200 tons per day at Circular Economy Industry Park in Shen County, Shandong Province, China.
In Jan, SIIC announced its signing of a build-operate-transfer (BOT) service concession agreement with Shandong Province to construct and develop a RMB 600 million waste incineration project and the same WTE facility.
Through its subsidiary Shanghai Fudan Water Engineering Technology, the group will hold a 51% stake in the new JV company with its contribution of RMB53.55 million.
World Prosperous Investments, Shanghai Nanyi Environmental Technology Company and Shandong Sanding Company will hold a remaining interest in the JV with equity interests of 20%, 24% and 5%, respectively.
World Prosperous is wholly owned by Canvest Environmental Protection Group Company, in which Hong Kong-listed Shanghai Industrial Holdings holds a 17.52% stake.
Shanghai Industrial also has interests in the shareholders of SIIC, namely: SIHL Treasury, S.I. Infrastructure Holdings, and Triumph Power (owned by S.I. Infrastructure).
Together, the three companies have amassed a 46.71% stake in SIIC.
In its filing on Tuesday, SIIC says the establishment of Shen County SIIC Environmental Energy is in line with its goal to explore new business opportunities with more partners in the waste management sector.
The group does not expect its new JV to have a material effect on its NTA nor EPS for the current financial year.
Shares in SIIC closed 3.95% lower at 36 cents on Monday.
