Salcon Bhd will be able to take control of two water treatment plants in China in a RM47.5mil deal with Darco Water Technologies, which is listed on the Singapore Exchange.
Salcon said on Monday it is acquiring a 60 per cent stake in Darco Enviromental Pte, a unit of Darco Water, which is an integrated engineering and knowledge-based water treatment solutions provider.
Upon completion of the acquisition, Salcon will own and operate two existing water treatment plants - Wukang and Qian Yuan - in the Zhejian province. The concession periods for the plants are 25 years and 22 years.
The acquisition is expected to generate revenue of RM842.52mil throughout the concession period.
According to Darco’s website, it was listed on the SGX in 2002. It is involved in the design, fabrication, assembly, installation, commission and service engineered water systems for industrial use in Singapore and Malaysia.
It has since expanded into air management system, soil remediation and solid-waste recycling.
The group, which has operations in Singapore, Malaysia, China, Taiwan, Philippines and Indonesia, serves companies across diverse industries - electronics, semiconductor, textile, food and beverage, printed circuit board, solar-energy and pharmaceuticals, and takes on municipal water and wastewater projects.
