(September 20, 2010) Sumitomo Corporation and Sumitomo Corporation (China) Holding Limited agreed with Beijing Capital Co Limited and its wholly owned subsidiary Beijing Capital (Hong Kong) Co Limited to enter into an alliance for water infrastructure related business.
Following with the conclusion of the alliance, and through a JV company, which will be established in Hong Kong by the SC Group and BCHK, the SC Group will participate in three wastewater treatment service projects in the Chinese provinces of Shangdong and Zhejiang, which are now owned by BC group companies. The SC Group will hold 40% of equity interest of JV and will dispatch directors, and ultimately aim to invest CNY 50 billion into water related businesses in the following 3 years.
The SC Group will optimize its experience and expertise in overseas infrastructure businesses and its function for project coordination and will introduce water treatment technologies from Japan. On the other hand, BC will utilize its accumulated know how through investment, construction, operation and maintenance in water infrastructure related businesses in China.
The SC Group and BC will aim to expand the scale of JV by conducting investment, development, operation and maintenance of water infrastructure related businesses in China, the world’s most growing market, through JV. In future, the SC Group and BC will consider expanding their collaboration to countries other than China, and furthermore, business sectors other than water infrastructure, such as waste and sludge treatment and other environmental technologies.
Sumitomo Corporation established its Environmental Policy based on its Corporate Mission Statement in 1999. It aims for symbiosis between social and economic progress and environmental preservation, and its fundamental principal is to strive to achieve sustainable development through sound business activities. As a part of its promotion of businesses and projects which contribute to environmental preservation and reduction of the impact of society on the natural environment, Sumitomo Corporation has been actively taking part in water infrastructure business areas. Examples of such projects are the water treatment BOT project in Izmit, Turkey, wastewater treatment BOT projects in San Luis Potosi, Culiacan and Juarez in Mexico, and desalination projects in the Kingdom of Bahrain and the United Arab Emirates. Sumitomo Corporation will continue expanding its water related businesses, which will contribute to the maintenance and improvement of people’s living environment around the world.
BC is listed on the Shanghai Stock Exchange, and invests in and operates infrastructure related businesses such as water and wastewater treatment projects and highways in China. Its turnover in fiscal 2009 was CNY 2,638 million. They are the largest provider of water infrastructure in China, providing water and wastewater treatment service in 33 cities including Beijing, the provinces of Hunan, Shangdong, Anhui and Shenzhen for more than 20 million people.
SteelGuru, September 20, 2010
Categories: Beijing Water