Singapore International Water Week Opens Gateway to China market; Business Forum and Country Pavilion Help Firms Discover New Opportunities in China

JCN Newswires, June 16, 2008

Singapore, June 16, 2008 - (JCN Newswire) - Water industry players will get the inside track on China's fast-growing water market at this month's Singapore International Water Week, a global platform for water solutions.

China is the focus of one of the seven regional business forums being held on 25 and 26 June 2008. These exclusive networking sessions will introduce participants to senior government officials and potential business partners in China, India, Japan, South-east Asia, Australia, Europe and the Middle East.

The sessions are an example of the high-level exchanges and business networking that will take place during Singapore International Water Week (23 to 27 June 2008), an annual water summit, scientific conference and trade show attended by representatives from governments, utilities, businesses and academia.

The China Business Forum will involve leaders from the Ministry of Water Resources. As key decision-makers in China's water policy, governance and major national projects, they will be sharing on the water policy framework, development trends and opportunities. Municipal authorities, enterprises, industry associations, will also be on hand to discuss their regions' water needs and profile their water projects and business opportunities.

"The forum will be the next best thing to being in China itself," said Mr Michael Toh, General Manager of Singapore International Water Week. "Water companies will get an introduction to industry trends and the intricate workings of China's water sector, which will be especially valuable to newcomers with little knowledge of the market."

China's Trillion-yuan Water Market

In its 11th five-year plan, the Chinese government projected that the total investment in its water sector would amount to almost RMB1 trillion from 2006 to 2010. Of this, some RMB300 billion would be for investments in sewage and water reclamation projects, and RMB100 billion for rehabilitation of the water supply network and infrastructure. Projects to divert supplies to cities suffering water shortages will also attract large investments.

According to the Worldwatch Institute, China has only eight per cent of global freshwater resources but 22 per cent of the world's population. Much of what it does have is concentrated in the south, with northern and western regions prone to severe drought.

Water and wastewater treatment capabilities are limited as well. Data from China's Ministry of Housing and Urban-Rural Development shows that as of the end of 2005, some 278 cities in China did not have sewage treatment plants, and eight of these had populations of more than half a million. More than half of China's 1.3 billion people live without any form of sewage treatment, say city planning officials. The 11th five-year plan seeks to control water pollution by raising sewage treatment and water reclamation rates, especially in the arid cities of the north.

Singapore Companies Blazing a Trail in China

As China's water industry continues to grow, several Singapore water firms have made substantial inroads into the market.

Sembcorp, a leading utilities and marine group with extensive experience in industrial wastewater treatment, has been expanding their presence in China with the Zhangjiagang Free Trade Zone and Nanjing Chemical Industrial Park in Jiangsu Province. Last month it signed a memorandum of understanding with the Zhangjiagang government to expand the scope of its operations beyond the free trade zone, develop a water technology centre and jointly organise an international water conference. Earlier this year, it also announced a joint venture to build, own and operate an industrial water recycling facility in Zhangjiagang Free Trade Zone.

Sembcorp is also involved in the Shanghai Chemical Industrial Park, as well as projects in Shenyang and Tianjin.

"Our focus in China right now is to offer our expertise to meet the government and industries' needs in water and wastewater management. As our investments in Nanjing and Zhangjiagang have shown, our solutions, especially those in the treating of highly concentrated and complex industrial wastewater, have led to more effective management of wastewater. This has mitigated the impact on the environment," says Tang Kin Fei, Sembcorp's Group President & CEO.

Another home-grown company, Hyflux, has established a strong presence in China since its entry in the 1990's, with coverage in the market in 26 provinces. To date, Hyflux has been awarded more than 35 projects covering wastewater treatment and water recycling across the nation, in Hebei, Jiangsu, Liaoning, Shandong, and Tianjin provinces.

Hyflux is also building China's largest desalination plant in Tianjin. The S$155 m membrane - based desalination plant, with a capacity of 150,000m3 per day employs Hyflux's proprietary ultra-filtration technology.

On the industrial front, Hyflux has been active in the biotechnology, chemical, electronics, petrochemical and pharmaceutical sectors for more than 12 years, serving some 500 clients. It is also building regional used oil recycling centres in Beijing and Taizhou, and has two L-lactic acid manufacturing facilities in Huludao and Ningxia.