Singaporean-Australian decentralised water and waste-water treatment company De.mem Limited (ASX:DEM) ended a strong year by winning additional contracts in Australia and is anticipating another successful year in 2018.
The contracts are worth approximately $AUD800,000 and were awarded to De.mem’s 100% owned subsidiary Akwa-Worx Pty Ltd in Queensland. De.mem officially expanded into Australia after acquiring Akwa-Worx last September.
“We have been very pleased to see the momentum in our projects business,” says Andreas Kroell, Chief Executive Officer of De.mem. “The total value of major contracts awarded to De.mem from August to year end 2017 now stands at above $AUD 2.5 million.”
Among the customers for the most recent contracts awarded to De.mem is Ausco Modular Pty Ltd, one of Australia’s largest construction companies using modular technology. The scope of work for this project includes the delivery of equipment, primarily storage tanks that are containerised and mobile solutions for potable water or sewage.
Kroell believes that this momentum will carry over into this year. “The outlook for 2018 is good,” says Kroell. “Along with these consistent wins we are continuing to develop the technology side of our business which includes our innovative nanofilter membranes.”
De.mem is hoping to leverage its recent contracts wins in Australia’s mining and construction industries into opportunities the company is exploring in China.
“We signed an agreement with Virtual Curtain China Limited (VCCL) in November,” says Kroell. “It allows De.mem to jointly pursue imminent market opportunities in the Chinese nuclear, mining and minerals and coal-to-chemical sectors. Our recent work in Queensland and technology portfolio is complementary to opportunities in China.”
With an estimated market size of AUD$20 billion, China is the world’s largest producer of waste water, producing approximately 68 billion tonnes a year. In 2015, the Chinese government implemented the “Water Ten Plan”, a series of measures focused on controlling pollution, promoting water treatment science and technology, enforcing laws and regulations and improving overall water quality.
“De.mem is currently exploring ways of commercialising our nanofilter membrane for use in China,” says Kroell. “We see plenty of opportunities for our company at the moment, but China is something we will continue to work on this year. There is clearly a huge potential market there for us.”
Since June 2016, De.mem has held an exclusive worldwide license from Nanyang Technological University (NTU) for the use of its breakthrough nanofilter membrane technology.
The low-pressure hollow fibre nanofiltration membrane can reduce energy consumption by up to 80% compared to conventional water treatment processes, making it more efficient and cost-effective.
De.mem set up a new factory specifically for the production of the nanofilter membrane and membrane modules in July 2017. Both NTU and the factory are located in Singapore. In October, the company started the first pilot-scale water treatment plants in which the new membrane is used, in Singapore and Vietnam.
“We were very pleased to set up membrane production so soon after listing on the Australian Securities Exchange (ASX),” says Kroell. “Along with our expansion into Australia, it was one of our major milestones for 2017. It was an excellent year for the company and we are looking forward to what 2018 will bring.”
