Fluence Corporation Limited (ASX: FLC) has secured its first operation and maintenance (O&M) contract in China covering eight existing MABR wastewater treatment plants in Panjin City, Liaoning province.
The contract has an annual value of US$1.0 million with renewable one-year terms.
Fluence will ensure the plants continue to meet China’s Class 1A wastewater treatment standard.
The company’s strategy is to steadily grow its recurring revenues by selling water and wastewater treatment as a service rather than selling plants and securing ongoing parts and service revenues including O&M contracts both on its existing and new plants.
We are very pleased to win this contract with Panjin City,” Tom Pokorsky, CEO and Managing Director, said.
“We are the obvious and most reliable choice for O&M support for the plants we sell. These initial plants represent less than 5% of MABR capacity sold to date, so there is plenty of room for us to further grow this recurring revenue business both in China and for the substantial MABR capacity we have sold elsewhere. Nirobox plants are also perfect candidates for O&M services.”
Fluence is a leader in the decentralized water, wastewater and reuse treatment markets, with its pre-engineered, standardized Smart Products Solutions (SPS), including Aspiral, NIROBOX and SUBRE.
In addition to rapid delivery and commissioning of decentralized solutions to meet a broad range of needs, Fluence offers ongoing operation and maintenance support, as well as Build Own Operate Transfer (BOOT) and other recurring revenue solutions.
Fluence has a broad international footprint and focuses on high growth markets including China, the Middle East, South East Asia, and North America.