Leader Environmental Technologies has announced it has entered into a joint venture (JV) agreement with the local government of Yishui county in the Shandong province of China on May 12.
The announcement comes after the company had previously announced on May 3 that it was in advance negotiations with a local government in Shandong that was unspecified.
Leader will form a JV company with Jinan Kaida Huicheng Shui Wu Co and Qingdao Hexin Huanjing Co. The companies will hold a 72%, 18.2% and 9.8% stake in the JV company respectively.
According to Leader’s filing to the Singapore Exchange (SGX), Jinan Kaida and Qingdao Hexin are companies engaged in environmental business in the Shandong province.
SEE:Leader Environmental Technologies to set up JV with Nanosun with total investment of $10 mil
The JV company will invest in a separate company with the local government with shareholding interests of 65% and 35% respectively.
The company states that the total investment amount is expected to be approximately RMB255 million ($52.6 million), which will go towards two animal manure treatment and resource recovery facilities, a sludge treatment plant, and an operation and maintenance contract for an industrial wastewater treatment plant.
Executive chairman and CEO of Leader, Dr Lin Yucheng, says the investment will enable the company to offer a one-stop solution to the complete treatment and resource recovery of animal manure and sludge. “Animal manure and sludge pose a big environmental challenge in China. We are confident that with our advanced technologies and vast experience, we can tap on the huge market potential,” he says.
The sludge treatment project will commence after the commissioning and acceptance of the animal manure treatment project, and the construction is expected to be completed in 12 months.
As at 1.44pm, shares in Leader were up 0.4 cents or 3.57% higher at 11.6 cents.
