The company will have 29.6% effective ownership in the redevelopment project.
A subsidiary of Sembcorp Industries, Sembcorp Development, will be involved in the development of a new industrial park in Vietnam’s Quang Tri province.
The project, Quang Tri Industrial Park, will be located 60 kilometres of Phu Bai International Airport (Hue airport) in Central Vietnam. It will span approximately 481 hectares, with the initial development phase comprising 97 hectares.
The investment licence for this project, Quang Tri Industrial Park, has been issued to a consortium that includes Vietnam Singapore Industrial Park Joint Venture Co (VSIPJV), Sembcorp Development’s joint venture company with long-standing partner Becamex IDC Corporation.
According to the announcement posted in the Singapore Exchange, following the receipt of the investment licence, the new joint venture will require the clearance of anti-monopoly legislation and enterprise registration to establish a joint venture company in Vietnam.
Sembcorp Development’s effective ownership in the project will be 29.6%. The entire process is expected to be completed by mid-2021.
The Quang Tri Industrial Park project is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2021, Sembcorp said.