Sanli Environmental enters 50:50 JV with STECS to deliver Changi NEWater Factory 3 subcontract works
Summary:
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Wholly owned unit Sanli M&E Engineering has formed an unincorporated joint venture with Shanghai Tunnel Engineering Co (Singapore) Pte Ltd, called “SANLI–STECS CNF3 JOINT VENTURE”, to act as subcontractor on the Changi NEWater Factory 3 project awarded by PUB.
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The JV is split 50:50 between Sanli M&E and STECS, involves no initial cash capital contribution, and will see each party enter into sub-subcontract arrangements with the JV.
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Sanli M&E will take the lead role, handling mechanical, electrical, instrumentation, control and automation works, structural steelworks and building management systems, while STECS will be responsible for civil, structural, architectural and external works (excluding BMS).
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A four-member management committee (two representatives from each party) will oversee the JV, with Sanli M&E’s representative chairing and key decisions requiring unanimous approval.
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The JV is not expected to have a material impact on Sanli’s net tangible assets or earnings per share for the year ending 31 March 2026, and there are no related-party interests in the arrangement.