DL E&C invests in Chinese water treatment platform shares to "strengthen eco-friendly new business"

Acquired Shares of UW, China's Top Water Treatment Company, with a 20 Billion KRW Investment

Overview of the water treatment facility operated by China UW, whose shares were acquired by DL E&C

[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) is strengthening its ESG (Environmental, Social, and Governance) new business initiatives.

DL E&C announced on the 2nd that it has signed a joint investment agreement with IMM Investment in ESG-related fields and has made an equity investment in United Water (UW), a leading water treatment platform company in China. To this end, DL E&C invested 20 billion KRW in a special purpose company (SPC) established by IMM, and the SPC additionally raised acquisition financing to acquire additional shares of UW on the 28th of last month, resulting in a total ownership of 25% equity.

A DL E&C official expressed expectations that "this investment will proactively capture new business opportunities in the ESG sector while contributing to securing water resources and improving the environment in China, which suffers from chronic water shortages."

UW is one of the top private companies without Chinese government or public enterprise equity in the rapidly growing Chinese water supply and sewage treatment market. UW operates water supply, sewage treatment, and related engineering businesses at 23 sites across 9 provinces in China and neighboring countries. The company’s corporate value is expected to continue growing through the expansion of the water treatment market in China and active expansion into neighboring countries, with a listing application on the Shanghai Stock Exchange anticipated within this year.

DL E&C plans to actively explore entry into the water resource infrastructure markets of Southeast Asia and Russia, adjacent to China, by leveraging UW’s extensive business expansion capabilities within China and its amicable relationships with local governments. By utilizing DL E&C’s water treatment technology and project execution experience, the strategy is to elevate UW’s capabilities to a global level and maximize synergy for pioneering new markets.

Alongside the water treatment business, DL E&C plans to actively pursue new businesses in eco-friendly fields such as hydrogen energy and carbon capture and storage (CCS). The strategy is to align with the global carbon neutrality trend, promote eco-friendly businesses, and secure future growth engines. Based on the design and construction technology and project execution experience accumulated through related projects, DL E&C plans to actively participate in new projects. In the long term, the company intends to discover self-operated projects in these fields to establish sustainable growth drivers.