Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies and Dong Nai Plastic (DNP) Water on Wednesday signed an agreement to acquire a 24 per cent stake in the Vietnamese water treatment company for about 52.7 billion KRW (US$41 million).
With this acquisition, Samsung Engineering will hold 24 per cent of the stake in DNP Water, DNP Holding will hold 53 per cent, and other stakeholders 23 per cent.
DNP Water is a private enterprise that focuses on local water supply businesses and is the largest private water treatment company in Viet Nam in terms of treatment capacity. It was spun off from the DNP Group, a manufacturer of plastic piping, in 2017. Since then, it has been growing in the water treatment business by purchasing privatised existing water supply assets and developing new businesses.
The Asian water treatment market is shifting from a loan business to a private-led market, due to recent economic developments. Accordingly, Samsung Engineering plans to actively target Viet Nam as a base for the Asian water treatment market.
Samsung Engineering has confidence that the company's rich EPC experience and their global technology expertise in the water treatment field, as well as DNP Water's experience and network in Viet Nam's water supply businesses, could create synergy in future business executions.
The stake in DNP Water enables Samsung Engineering to have access to Viet Nam's water and sewage treatment businesses and therefore can expand businesses in this important market. Further, based on such regional competitiveness, Samsung Engineering plans to expand its business into Viet Nam's sewage treatment businesses, and further expand this model applied in Viet Nam to neighbouring Asian countries.
GyuYeon Kang, Executive Vice President, said: "Aligned with the recent global Environmental, Social, and Governance (ESG) trend, our environmental business is positioned as one our company's future growth engines. Samsung Engineering plans further to expedite and grow in the global environmental markets such as in Asia, by setting an example with successfully executing our environmental businesses in Viet Nam.”
Samsung Engineering has served clients in a variety of industries such as oil-refining, gas-processing, petrochemicals, infrastructure and environmental sector and bio-industry. Providing professional services across the whole project cycle ranging from professional feasibility-studies to design, procurement, construction, commissioning, maintenance operation, it has completed more than 1,000 projects worldwide. — VNS