Sunup for Modern Water in China with new JV for proprietary brine concentration technology
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Modern Water plc, owner of leading technologies for water and wastewater treatment and for the monitoring of water quality, has entered into a proposed joint venture (JV) with Chinese company Hangzhou Shangtuo Environmental Technology Co. Ltd, trading as Sunup.
Set for an initial term of 20 years, the new JV – known as Encyclo Water Technology (Zhejiang) Co., Ltd will promote Modern Water's innovative and proprietary brine concentration technology (AMBC) throughout China.
Modern Water and Sunup will have respective equity interests of 49% and 51% in Encyclo, for which they will initially subscribe approximately US$80,000 each within 3 months of the grant of the Business Licence. Encyclo will have a registered share capital of US$5m.
Sunup has committed to subscribe for 5,021,353 new ordinary shares in Modern Water plc at 11 pence per share (total £552,348.83), conditional upon confirmation of foreign investment by the local government of Hangzhou District and Zhejiang province in China, and admission of the new ordinary shares to trading on AIM, the London Stock Exchange’s international market for emerging companies.
Simon Humphrey, Modern Water's CEO, said: "A partnership between Sunup and Modern Water will create value for both companies by combining Modern Water's innovative brine concentration technology with Sunup's extensive knowledge of the market in China and its ability to execute projects effectively and to a high standard. This represents a landmark moment in the commercialisation of our brine concentration technology."
Speaking for Sunup, which is an environmental technology company integrating water and wastewater solutions for industrial clients in China, CEO Noah Tan added: "This is a significant strategic partnership that brings innovative technology to the Chinese market where water conservation is highly prized. We are expressing our confidence in the technology by making a sizable investment in Modern Water plc."
This new joint venture in China follows the recent opening of the world's first brine treatment plant based on Modern Water's all membrane brine concentration process (AMBC). The new plant in India treats technically challenging wastewater for chemicals giant Bodal Chemicals, one of the world's leading manufacturers of dyes and dye intermediates.