SIIC Environment penetrates Northeast China through Longjiang Environmental

The acquisition is worth a hefty CNY405 million.

SIIC Environment Holdings Ltd., an investment holding company engaged in wastewater treatment and water supply, will acquire a 25.3% stake in Longjiang Environmental Protection Group through internal funding, according to a report by Maybank Kim Eng.

Longjiang also engages in wastewater treatment, sludge treatment and tap water supply in the northern region of China, with total water treatment and supply design capacity of 2.2m ton/day and sludge treatment capacity of 1,000 ton/day. Maybank notes that SIIC’s parent Shanghai Industrial Holdings also has an effective interest of 16.8% in Longjiang, and says that it will not be surprised if SIIC absorbs its parent’s stake in Longjiang in the future and uses it as a platform for expansion into northeast China.