Boustead subsidiaries team up to secure S$25m demineralisation plant at Tuas Power Tembusu multi-utilities complex

Boustead Singapore Limited (“Boustead”) is pleased to announce that its wholly-owned subsidiary, Boustead Salcon Water Solutions Pte Ltd (“Boustead Salcon”) – a leading global specialist in water and wastewater engineering – has been awarded a S$25 million contract to design, engineer and construct a demineralisation plant (the “Demin Plant”) at the Tembusu Multi-Utilities Complex (the “Complex”) owned by TP Utilities Pte Ltd (“TPU”), a subsidiary of Tuas Power Ltd, which is a member of power giant, China Huaneng Group.  In a collaborative effort, Boustead Salcon is partnering with its sister company, Boustead Projects Pte Ltd (“Boustead Projects”) – a specialist in industrial real estate solutions – to deliver all aspects of the Demin Plant.

The Demin Plant forms an important part of the upcoming complex, which is a fully integrated co-generation and utilities complex that provides one-stop third-party utility services including electricity, steam, cooling water, high grade industrial and demineralised water, firewater and wastewater treatment to petrochemical clients in the Tembusu industrial sector of Jurong Island.  The first and largest of its kind in Singapore to employ a fuel mix of coal and tropical biomass for the generation of utilities, the first phase of the Complex is expected to be operational by mid-2012.

The Demin Plant is capable of producing up to 17,280 cubic metres/day (three trains of 5,760 cubic metres/day each) of high grade pure water for industrial usage.  Boustead Salcon will undertake the design, engineering and delivery of demineralisation process systems including M&E and process control systems.  In a complementary role, Boustead Projects will be responsible for the civil works component of the Demin Plant including the main building, ancillary buildings, electrical and fire fighting systems.

The contract for the Demin Plant is the second major contract awarded to Boustead Salcon for the construction of facilities at the Complex.  In October 2010, Boustead Salcon announced a multi-million dollar contract awarded by Marubeni Corporation – the main EPC corporation for the complex – to design, engineer and construct a 1,800 cubic metres/day reverse osmosis raw water treatment facility and a 6,000 cubic metres/day return condensate treatment facility at the Complex to recover condensate from the utility boiler section, which reduces the amount of makeup water required and thus provides significant savings on fuel.

Mr Tan Kwee Kok, Chief Executive Officer of Boustead Salcon said, “It is an honour to be selected by TP Utilities yet again, to participate in the largest utilities development on Jurong Island.  This represents their confidence in Boustead Salcon’s strong track record in the power industry, especially in the engineering of demineralisation plants.  Together with Boustead Projects, we will continue to contribute to the success of the Tuas Power Tembusu Multi-Utilities Complex.”

Mr Thomas Chu, Managing Director of Boustead Projects said, “We are pleased to have the opportunity to partner with our sister company, Boustead Salcon on this major energy development in Singapore.  There are clear and complementary synergies between Boustead Salcon and Boustead Projects, this demineralisation plant being a prime example.  Our complementary capabilities – in process technology and design-and-build expertise respectively – offer us various opportunities to enhance our service offerings to the client and team up for future water infrastructure projects in Singapore.”

The above contract is not expected to have a material impact on the profitability, earnings per share or net asset value per share of Boustead in the current financial year ending 31 March 2011.  However, the above contract is expected to have a positive material impact on the profitability and earnings per share in the next financial year ending 31 March 2012.

None of the Directors or controlling shareholders of Boustead has any interest, direct or indirect, in the above contract.


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