WHAUP to expand the utilities business in CLMV Acquiring 47.31% stakes in Cua Lo, tap water producer and distributor in Vietnam
Bangkok –WHA Utilities & Power PLC (WHAUP) gears up to expand its utilities business in CLMV, sending its subsidiary “WHAUP Nghe An Joint Stock” acquired a 47.31% stake in Cua Lo, the producer and distributor of water supply in Nghe An province, Vietnam, for the investment of Baht 31.9 Million.
Mr. Wisate Chungwatanas, CEO of WHA Utilities and Power PLC (WHAUP), said its subsidiary “WHAUP Nghe An Joint Stock” acquired a 47.31% stake in “Cua Lo Water Supply Joint Stock Company” (“Cua Lo”) in Vietnam, a water supply producer in Nghe An province, for the cost of VND 23,455.52 Million or Baht 31.9 Million.
Cua Lo was established in 1998 to produce and distribute water in Nghe An province, Vietnam, having the current water production capacity at 3,000 cubic meters per day. It is expanding its capacity to 13,000 cubic meters per day, scheduled to complete in the second quarter of 2019.
The CEO of WHAUP noted that Nghe An province has vast potential among top investment locations in Vietnam, after Hanoi and Ho Chi Minh City, as it is easily linked with transportation network. Nghe An, situated next to Highway 1A and the railway connecting Hanoi and Ho Chi Minh City, is only 10 kilometers far from Vinh International Airport and close to four deep seaports including Cuo Lo deep seaport and another three seaports which are now under construction. Besides, Nghe An has a special economic zone with full government support for investment in electronics, textile, food, logistics, FMCG and auto parts, etc.
With these positive prospects, Nghe An province has been rising water demand from both household and industrial uses, and the water demand growth is in line with the country’s economic expansion, spurred by Vietnamese government incentives. Thus, the Cua Lo investment will benefit WHAUP in terms of profit from the overseas utilities business.
“This investment marks an important step for WHAUP utilities business expansion in CLMV, especially in Vietnam, as part of our long-term investment target. Moreover, it is also in line with our plan to expand the utilities business outside WHA Group’s industrial estates,” Mr Wisate said.
Additional information
Presently, WHAUP has been investing in utilities projects in Vietnam. The company has already secured rights to operate the water supply business in WHA Industrial Zone 1- Nghe An, which is now under construction and due to complete and start commercial operation in the third quarter of 2019.