SembCorp expands industrial wastewater treatment capacities in China to meet increasing customer demand

July 24, 2007

SembCorp Utilities, the wholly-owned subsidiary of SembCorp Industries, is pleased to announce that it will expand its industrial wastewater treatment capacities in Nanjing and Zhangjiagang in China to meet increasing customer demand. The expansions will amount to a combined investment cost of RMB 208.5 million (S$42.2 million).

With these expansions, SembCorp’s combined industrial water capacity in operation and under construction, including industrial wastewater and water treatment, will total 277,500 cubic metres per day.

The Nanjing industrial wastewater treatment facility, which has an existing capacity of 12,500 cubic metres per day, will be expanded by 30,000 cubic metres per day at an estimated cost of RMB 110 million (S$22.3 million). In operation since July 2005, the facility is located in Nanjing Chemical Industrial Park (NCIP), the second chemical industrial park in China to be accorded the State Level Chemical Hub status. The expanded facility, expected to complete by early 2008, is built mainly to treat high salinity wastewater.

The Zhangjiagang industrial wastewater treatment facility, located in Zhangjiagang Free Trade Zone (FTZ) in the southeast of Jiangsu Province, will undergo an expansion of 15,000 cubic metres per day from its existing capacity of 20,000 cubic metres per day. Costing RMB 98.5 million (S$19.9 million), the expansion will treat high concentration wastewater without requiring pre-treatment of the wastewater by customers, a first in China. It is expected to complete by the third quarter of 2008.

Mr Tang Kin Fei, Group President and CEO of SembCorp Industries said, “SembCorp aims to be the leading provider of industrial utilities in China and we are excited to be scaling up our operations in Nanjing and Zhangjiagang. With more companies choosing to set up operations in NCIP and Zhangjiagang FTZ, the increased capacities will ensure that our facilities are able to meet customers’ rising demand for wastewater treatment services. In particular, we believe that our capability to treat high concentration industrial wastewater plays a key role in meeting the requirements of international industrial companies on these sites as well as stringent environmental control standards.”

Construction work for the Nanjing facility will begin immediately after the foundation laying ceremony, which will be officiated by Nanjing Vice Mayor, Mr Li Qi, on July 24. The ceremony follows the celebration of the construction completion of a 100,000 cubic metres per day industrial water treatment facility, located also in NCIP, on the same day. Construction work for the Zhangjiagang facility will also begin immediately after the ground-breaking ceremony, officiated by Deputy Director, Department of Science & Technology, Ministry of Construction, Mr Han Ai Xing, on July 25.

These investments do not have a material impact on the earnings per share and net tangible asset per share of SembCorp Industries for the financial year ending December 31, 2007.