Modern Water, a water purifying and monitoring technology company, has signed a 'Framework Agreement' with Hangzhou Development Center of Water Treatment Technology (Hangzhou Water) for China, sending the shares up in early morning trade.
Details of the deal were sketchy but the partnership allows both organisations to jointly identify and develop projects in China, including seawater desalination plants and other water-related opportunities.
The significance of this move lies in the fact that state-owned Hangzhou Water is a key player in the water industry in China, specialising in membrane systems that have different industrial uses such as seawater desalination, industrial pure water preparation and water reuse. It has won or been involved in approximately 60% of China's current or planned desalination projects.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
According to figures cited by Modern Water, this industry sector in China is estimated to see investment of up to $3.2bn over the next four years.
Last year Modern Water appointed a non-executive chairman to drive business development in the region. This appointment was supported by the growth of Modern Water's Monitoring Technologies division in China which last year contributed sales of more than £0.5m to the group.
The positive news follows an announcement on September 5th that Modern Water had commissioned its first commercial desalination plant in Oman.
The shares were up 11.5p to 55p at 10.25.
CM
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
