Latest joint agreement will help both companies reinforce their market leader positions in water treatment products and technologies.

Latest joint agreement will help both companies reinforce their market leader positions in water treatment products and technologies.

By year 2015, Singapore hopes to supply technology and products to three per cent of the global water market. This is a vision that is kept afloat by international players cashing in on Singapore's stellar capabilities in R&D, as well as the Republic's strong support for innovation, test-bedding and commercialisation activities. Indeed, despite the country's lack of natural resources, it's an achievement that 15 per cent of the world’s publicly listed water companies can be found on the Singapore Exchange.

Local company Hyflux Ltd is no stranger to the environmental technology sector. Specialising in membrane technologies, Hyflux has established water treatment operations and projects in Singapore and Southeast Asia, China, the Middle East, North Africa and India. Just last year, the company was awarded Water Company of the Year by the UK's Global Water Intelligence at the Global Water Awards.

To enhance its growing reputation, Hyflux announced on 22 January 2007 that it was joining forces with US-based Marmon Water LLC (Marmon Water), one of the world's largest manufacturers of residential and commercial water treatment systems. Up to S$80 million (US$52.3 million) will be invested over the next few years in two joint ventures (JV), involving R&D and manufacturing, respectively. The two companies have also entered into licence agreements on products that will allow them to leverage the other's strengths while complementing their current offerings.

L-R: Kennth Tan, Executive Director, EDB; Olivia Lum, Group CEO & President, Hyflux; Khoo Teng Chye, CEO, PUB; Lee Yi Shyan, Minister of State for Trade & Industry; John Goody, President, Marmon Water; and Judith R.Fergin, Charge d'Affaires, Embassy of United States of America.

L-R: Kennth Tan, Executive Director, EDB; Olivia Lum, Group CEO & President, Hyflux; Khoo Teng Chye, CEO, PUB; Lee Yi Shyan, Minister of State for Trade & Industry; John Goody, President, Marmon Water; and Judith R.Fergin, Charge d'Affaires, Embassy of United States of America.


PLUMBING GROWTH

The agreements were signed by Olivia Lum, CEO and President, Hyflux Ltd, and John J. Goody, President, Marmon Water LLC, at a ceremony presided over by Lee Yi Shyan, Minister of State for Trade & Industry. In the R&D alliance, an equal share JV company will be established in Singapore to develop innovative and affordable products and technologies for both residential and commercial applications in mature as well as fast-growing emerging markets. Up to S$50 million (US$32.7 million) is expected to be invested over the next five years to bring these objectives to fruition, with the company comprising of up to 50 researchers.

"Together we will develop new products to provide clean, filtered and softened water for Asian homes," says Lum. "Additionally, these initiatives will allow Hyflux to expand our industrial filtration product range in Asia and allow Marmon Water to sell our membranes in North America, a market we have not previously addressed."

Besides R&D, Hyflux and Marmon Water will also embark on a manufacturing partnership. The JV company will have a wholly-owned subsidiary in China's Jiangsu province as well as in Singapore. Hyflux's subsidiary - Hyflux Consumer Products Pte Ltd - will own 49 per cent of the manufacturing JV in Jiangsu, with Marmon Water holding the rest. Over S$30 million (US$19.6 million) will be pumped in progressively over the next few years to begin the manufacture of residential water treatment and filtration products for worldwide markets, including China. Production is expected to commence in the second half of this year.

Hyflux and Marmon Water's licensing agreements, inked at the same ceremony, will be effective the next 20 years and includes the latter giving Hyflux the exclusive licence to its stainless steel membranes, used in high pressure and high temperature industrial applications. Hyflux will manufacture these locally and sell them throughout Asia, and also capitalise on media licenced by Marmon to purify liquid streams in pharmaceutical as well as F&B applications. In turn, Hyflux has given exclusive rights to a Marmon Water subsidiary for its range of hollow fibre membranes for manufacturing and sale in North America.

Hyflux's Ecosorb - Multi-functional composite absorbents

Hyflux's Ecosorb - Multi-functional composite absorbents


STREAM OF OPPORTUNITY

"Combining our two organisations' strong international capabilities and respective technical strengths is a great strategic match," says Goody. "Marmon Water's decision to invest in Singapore also reflects the government's strong commitment to developing the water industry."

The infrastructure is indeed in place. In May 2006, the Environment & Water Industry Development Council (EWI) was formed to spearhead the growth of the environment and water industry. Two months later, the country's Research, Innovation and Enterprise Council announced that it was adding S$330 million (US$215.6 million) to R&D's coffers over the next five years to further accelerate the development of the industry.

"Singapore has consistently invested in its environmental infrastructure, which allows our companies to acquire capabilities in managing and delivering advanced water treatment and recycling systems," says Lee. "As a result, our companies are now well-placed to export their expertise."

With Hyflux and Marmon Water's milestone announcement, more companies will be encouraged to take the lead to adopt mutually beneficial measures to grow their businesses. With these tie-ups, it is hoped that dedicated investments contributing to Singapore's water sector will triple to S$1.7 billion (US$1.1 billion) by 2015.