SINGAPORE – Singapore-based water treatment company De.mem (ASX: DEM) has sold a water treatment plant located in the Nghe An province in Vietnam.
The plant was purchased by local Vietnamese company Hung Thanh Environmental for approximately $AUD 510,000 ($USD 400,000).
Prior to the sale, De.mem designed, built, owned and operated the plant on a Build, Own, Operate (BOO) basis.
In the short-term, Hung Thanh Environmental Ltd also intends to adopt De.mem's proprietary membrane technology as part of an upgrade of the facility.
The water treatment plant can be monitored remotely and uses De.mem's patented hollow fibre membranes to generate high-quality water output for the nearby municipality and a number of factories.
Andreas Kroell, CEO of De.mem, said: “The sale of De.mem’s water treatment plant marks a significant transaction within the Vietnamese water treatment market, where membrane based water treatment is emerging.”
As Vietnam becomes a more industrialised nation, the pressure on the existing water and waste management infrastructure becomes greater.
The Vietnamese government has ambitious plans to upgrade its wastewater treatment capacity so that by 2025 all urban cities will have treatments systems and 70-80 percent of municipal wastewater will be collected and treated properly, according to Austrade.
In 2015, a study from Hanoi University estimated that Vietnam had invested $USD 228 million per year over the past five years in wastewater management projects. The increasing demand for wastewater treatment represents a huge opportunity for companies such as De.mem operating in Vietnam.
Following De.mem’s first overseas water treatment plant in Vietnam in 2013 it has since completed a number of projects in Singapore and Cambodia.