Download Joint Venture With Success Blossom Environment Vietnam Joint

HYFLUX LTD
Company Registration No. 200002722Z
JOINT VENTURE WITH SUCCESS BLOSSOM ENVIRONMENT VIETNAM JOINT STOCK
COMPANY TO INVEST US$10.5 MILLION TO BUILD REGIONAL USED-OIL RECYCLING
PLANT IN HANOI, VIETNAM
Hyflux Ltd (“Hyflux”) is pleased to announce that its wholly owned subsidiary, Eflux Singapore Pte
Ltd (“EFLUX”) has signed a Joint Venture Agreement with Success Blossom Environment Vietnam
Joint Stock Company (“SBEV”) to invest US$10.5 million to build a state of the art used oil
recycling Plant near Hanoi, capital of Vietnam ("Plant") which will engage in the collection,
treatment and recovery of used oil into high grade base oil for sale in Vietnam and other export
markets such as Laos and Cambodia.
EFLUX and SBEV will form a joint venture company to be known as Eflux Success Blossom
Company Ltd ("JV Company") with EFLUX holding 60% shareholding of the JV Company and
SBEV holding 40%. SBEV is formed between Success Blossom Group of Companies and Van
Dao Co., Ltd
Consistent with Hyflux's strategy in the used-oil recycling arena, Hyflux will be the technology
provider in terms of the sale and installation of its Hyflux Advanced Membrane System ("HAMS")
to the JV Company. In addition, Hyflux's subsidiary will be the project manager responsible for the
supervision of the design, engineering and construction of the Plant. Once the Plant commences
commercial operation, Hyflux' subsidiary will also be responsible for the maintenance of the Plant.
The joint venture draws upon the synergies of the three partners: Success Blossom’s extensive
know-how in the Vietnamese fuel oil sector; Van Dao’s experience and wide network in the
collection, recycling and sale of lubricants and grease in Vietnam; and Hyflux's proven membrane
technology.
Located at Phu Nghia Industrial Park, Chuong My Commune, Ha Tay Province, the Plant will have
the capacity to process and recycle up to 12,000 tonnes of feed used oil per year using the HAMS
when it is completed.
“The execution of this Vietnam joint venture signifies a further affirmative step taken by Hyflux in
the used-oil recycling business since the announcement of our Saudi Arabia joint venture some
five months ago. This joint venture would no doubt open doors for Hyflux's expansion into other
parts of Southeast Asia, “said Group CEO & President, Olivia Lum.
“Apart from Singapore, Hyflux is already building five regional used-oil centres in Singapore, China,
India and most recently in Saudi Arabia. Hyflux will continue to source for suitable partners globally
to realise the potential of this business. " Ms Lum concluded.
The formation of the JV Company is subject, amongst others, to the approval of relevant
Vietnamese government authorities.
The above transaction is not expected to have a material financial impact on the Hyflux group for
the current financial year.
By Order of the Board
Yang Ai Chian
Company Secretary
Submitted on 15 October 2007 to SGX-ST
Page 1 of 2
About Hyflux Ltd
Hyflux is one of Asia’s leading environmental companies, with operations and projects in
Singapore & Southeast Asia, China, the Middle East & North Africa and India.
Specialising in membrane technologies, Hyflux is today an integrated solutions provider offering
services that include process design and optimisation, pilot testing, fabrication and installation, and
engineering, procurement and construction. It is also engaged in the commissioning, operation
and maintenance of a wide range of liquid treatment systems on a turnkey or Design-Build-OwnOperate (DBOO) arrangement. Hyflux currently focuses on four core businesses namely water,
industrial manufacturing processes, specialty materials and energy (oil recycling)
In 2006, Hyflux was awarded Water Company of the Year by the UK’s Global Water Intelligence at
the Global Water Awards. It also made it to Forbes Asia’s Best Under a Billion List 2006.
About Success Blossom Group of Companies
Success Blossom Group of Companies is an active player in the Petroleum Trading and Bunkering
Business in Asia. Its mission is to be a one-stop-solution petroleum provider, offering the full range
of petroleum products and services including tanker management and operation as well as bunker
trading and bunker fuel supply.
Success Blossom trades and operates in and from all major ports through Asia. It ensures wide
network coverage of its customers, suppliers and associates through its agency offices located in
Vietnam, Malaysia and Thailand. Success Blossom is the official appointed distributor for Oil Major.
Riding on the success of its petroleum and bunker businesses, Success Blossom has set up a
commodities and special projects division, to focus on the trading of coals, ores and other
commodities as well as used/waste-oil recycling projects in Vietnam.
About Van Dao Group
The Van Dao Group is the first and only company in Vietnam with the nationwide license issued by
the Ministry of Natural Resources and Environment of Vietnam, to collect and treat industrial
wastes including used oil.
Van Dao has an active presence in the Vietnam used oil market since the 1990s. Some of its
customers include Coca-Cola, Toyota, Caltex, Yamaha, Vietnam Airlines, General Department of
Logistics Vietnam, and Vietnamese Navy Army.
In 2006, Van Dao achieved the Quality Management Certificate for the collection and treatment of
waste lubricants as well as production and trading of lubricants and petrol.
Van Dao has also been accredited with many utility solutions in the field of recycling sued oil and
manufacturing biofuels. Its trademarks of lubricant (VC Lube – Dragon Lube) and industrial grease
(phoenix) have been acknowledged by the Intellectual Property Agency of Vietnam.
Page 2 of 2