TROUBLED Singapore water treatment firm Hyflux has been rescued by a S$530m (US$384m) investment by an industrial consortium formed by the Salim and Medco groups.
Hyflux was forced to enter into a court-supervised reorganisation process in 2018 after depressed power prices in Singapore forced losses in the group’s energy activities. The Salim and Medco groups have formed a joint venture that will take a 60% stake in Hyflux. The company built two of Singapore’s three operating desalination plants including the largest in South East Asia – Singapore’s Tuaspring Integrated Water & Power project, which Hyflux also operates. Singapore is water poor and is investing in desalination to meet its growing needs. It has ordered two more desalination plants which are expected to come online in 2020.
“We will work with Hyflux to keep its flagship assets intact, bearing in mind the significance of this company to Singapore,” commented Anthony Salim, chairman of the Salim Group.
Salim Group is a conglomerate with business interests stretching across the power and water sectors in Asia. Medco Group also has a wide range of interests that include power generation, finance, and the energy and natural resources company MEI which is principally focussed on Indonesia.
“I am confident that with the support of this consortium, Hyflux will attain new heights and play an even bigger role in the infrastructure space, particularly in Singapore and South East Asia,” said Hyflux CEO Olivia Lum.
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