Press releases

Keppel Seghers Engineering Singapore Pte Ltd (Keppel Seghers), a wholly-owned subsidiary of Keppel Integrated Engineering Limited (KIE), has signed a framework agreement with Guangdong GuangYe Environmental Protection Industrial Group Co., Ltd (GuangYe) for the joint development and investment of environmental infrastructure projects in Guangdong Province.

The framework agreement was signed in the presence of Mr Wang Yang, Secretary of the Communist Party of China (CPC) Guangdong Provincial Committee, Mr Lim Swee Say, Minister, Prime Minister’s Office, and Mr Lim Chee Onn, Executive Chairman of Keppel Corporation.

Contributing to Guangdong’s Sustainable Development Efforts

The framework agreement outlines the collaboration of the two companies for the development of a near-term pipeline of water and solid waste treatment and management projects – amounting to nearly RMB $6 billion (approximately S$1.2 billion) - for numerous cities and counties across the vast area of Guangdong province.

Mr Chua Chee Wui, Chief Executive Office of KIE, said, “Guangdong’s potential is immense. The province has always been the locomotive of China’s economic growth since the ‘reform and opening up’ policy was launched in 1978. It is now on the cusp of transforming to a more sophisticated model of development. During this exciting time, Keppel is proud to partner GuangYe, a key Guangdong Province SOE specialising in environmental projects, in making a contribution towards the sustainable development of a new Guangdong.

“Incidentally, Keppel’s very first project in China was in Guangdong Province in 1995. We are an old friend of Guangdong. This latest collaboration with GuangYe therefore holds special meaning for Keppel.

“Keppel’s market leadership and global track record in environmental solutions, coupled with GuangYe’s local network and resources, will once again set us apart from our competitors in the industry.”

Chairman of GuangYe Group, Wu Liang said, “We are extremely pleased to partner Keppel in our efforts to bring sustainable development concepts to Guangdong Province. This partnership also represents a significant step in Guangdong GuangYe Environment Protection Co Ltd’s efforts in bringing technology, know-how into Guangdong’s environment facilities.”

Guangdong’s GDP is the largest in China. It is also one of China’s fastest growing provinces with its GDP rising 14.5% to RMB 3.06 trillion in 2007, and devotes no less than 2.5% of its GDP from 2004 to 2006 to environmental protection

Keppel Seghers has 70% of the imported waste-to-energy market share in China and is involved in the development of waste-to-energy plants across China, including cities like Suzhou, Shenzhen, Tianjin, Jiangyin and Guangzhou. It has also executed several wastewater treatment projects in Guangdong province.

Earlier this week, KIE announced its plans to set up and list the world’s first green business trust by mid 2009, with Senoko Incineration Plant as its seed asset. Currently, SIP treats 2100 tonnes of waste per day to produce 36 MW of green electrical energy for export.

This framework agreement will not have material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2008.


Background Information

Keppel Group in Guangdong Province

Keppel Group has been in Guangdong as early as 1995.

Keppel FELS Engineering Shenzhen has been operating in Shekou Chiwan, Shenzhen since 1998. Keppel FELS Shenzhen supports main office in Singapore by handling design analysis and detailed engineering for drilling rigs. More than 30% of Keppel FELS’ engineering work is undertaken in the China office.

Earlier in April 2008, Keppel Land, the property development arm of Keppel Group, announced that it will jointly develop the first premium waterfront homes in the affluent Pearl River Delta region of Zhongshan, located on MoDao Island in the Shenwan Town of Zhongshan City.

When completed, it is expected to yield about 300 high-end luxurious villas with private berths and 2,500 condominium units and serviced apartments, with a total gross floor area of 408,000sm.

Keppel Seghers has also sold environmental technology packages for both water and wastewater treatment and waste treatment to Shenzhen, Foshan, Zhongshan and Guangzhou.

Keppel FMO, the facilities management division of KIE, is in a 25%-75% joint venture with Guangzhou Baiyun International Airport Ground Handling Service Company Limited to provide operations and management services to the Guangzhou Baiyun International Airport since 2004.

Keppel Logistics Foshan is a 70-30 joint venture company between Keppel Logistics and Sinotrans Guangdong Company. Keppel Logistics Foshan provides a comprehensive range of integrated logistics service including port logistics services based in Lanshi port, supply chain management, third party logistics and other value-added services in Foshan, Pearl River Delta and South China. It was ranked among top six international freight forwarder in Guangdong Province by China International Freight Forwarder Association.


Keppel Integrated Engineering Limited (KIE)

KIE is the environmental technology and engineering division of Keppel Corporation Limited, a leading company in Singapore listed on the Singapore Exchange Securities Trading Limited.

Keppel Seghers, a member of the KIE Group, is a leading provider of comprehensive environmental solutions, including alternative energy, ranging from consultancy, design and engineering, technology and construction to operation and maintenance of facilities.

With a global footprint in more than 25 countries, KIE provides technology and fulfillment services for the treatment of municipal solid waste, hazardous and medical waste, wastewater and sludge treatment, potable water, desalination and home filtration systems.

To date, KIE has more than 350 water and wastewater projects and more than 300 thermal waste treatment solutions projects worldwide.

For further information, please contact:

Ang Lai Lee
Assistant Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: 64136427 / 82339299
Email: lailee.ang@kepcorp.com



 A firm partnership between Keppel Seghers and GuangYe: (From left) Mr Goh Chin Aik, 
 Director (Plant Operations and Utilities), Keppel Integrated Engineering, Mr Wang Jian,
 Chairman, Guangdong GuangYe Environmental Protection Industry Group