ASX-listed water and wastewater reuse treatment specialist Fluence Corporation Limited (ASX: FLC) has signed an Investment Cooperation Agreement for the establishment of a final assembly facility for its proprietary membrane aerated biofilm reactor (MABR) products.
The agreement with the Government of Xinglongtai District in China and Liaoning Huahong New Energy Co. Ltd also covers a volume commitment by Liaoning Huahong to purchase Fuence’s Aspiral and SUBRE products with a capacity of 52,500 cubic metres per day through the end of 2021 and minimum revenue targets for 2019 and 2020.
Fluence Managing Director and CEO Henry Charrabé said the Agreement will make Fluence the preferred supplier for wastewater treatment equipment for Liaoning Huahong.
The manufacturing of Fluence’s proprietary MABR modules will continue exclusively in Fluence’s wholly owned factory in Changzhou, Jiangsu Province.
“We are very pleased to gain further momentum in China with a second assembly facility with a local government, thereby strengthening our relationship with repeat customer Panjin City and our partner Liaoning Huahong,” Mr Charrabé said.
“This Agreement provides us with even more confidence that our expansion strategy in China is gaining momentum and is supported by local governments and partners, thereby providing the potential for bulk wastewater system orders incorporating our proprietary MABR technology.
“The establishment of this assembly facility will serve as a gateway to satisfy demand in Northern and Central China as modules are delivered from our Changzhou manufacturing facility and then assembled into our final products in Panjin City.
“Coupled with minimum commitment for orders from Liaoning Huahong, this represents a very capital efficient way to secure future business and will also help to improve MABR production efficiencies in our Changzhou manufacturing facility.
We look forward to a long and successful relationship in Liaoning Province with the local Xinglongtai government and our partner Liaoning Huahong.”
Liaoning Huahong expects to deploy Fluence’s MABR products to meet the growing wastewater treatment needs of Panjin City, Liaoning and surrounding provinces.
This Agreement follows the first commercial SUBRE order in China from Liaoning Huahong for the 3,000 m3/day greenfield wastewater treatment plant being constructed by the Panjin City Government earlier this quarter.