Goldis signs 23-year concession agreement for China treatment plant

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Thursday, 16 May 2013 18:44
A + / A - / Reset

KUALA LUMPUR (May 16): GOLDIS BHD [] has signed a concession
agreement to upgrade, expand and operate a sewage treatment plant in
China’s Shandong province.
In a statement to Bursa Malaysia, the company said its wholly owned
subsidiary Crest Spring Pte Ltd today entered into a build, operate and
transfer (BOT) concession agreement with Yantai Economic and
Technical Development Zone City Management and Environmental
Protection Bureau.
The BOT concession agreement will last for 23 years.
Goldis explained the project will help it to further enhance and broaden
its involvement in the water treatment business in China, as the
country’s rapid urbanisation and increasing environmental awareness
could offer growth potential and lucrative revenue.
However, the company said the proposed investment will not bring any
effect to its earnings for the financial year ending January 31, 2014
(FY14).
Goldis will set up a project company to undertake the upgrading and
expansion works of the sewage treatment plant in Yantai Economic
Development Zone, Shandong province.
The company will inject US$5 million (RM15.07 million) as a registered
capital for the project company. Crest Spring will fund the proposed investment in the project company through internally
generated funds and bank borrowings.
Another subsidiary of Goldis, Yantai Xin Cheng Wastewater Treatment Co Ltd, will serve as the treatment plant’s operator.
“Barring any unforeseen circumstances, the proposed investment is expected to be completed within nine months upon
obtaining the approvals of all relevant government regulatory authorities in China,” said Goldis.
The company's shares closed a sen higher today to RM2.06 with 674,700 shares done.