SEOUL -- Samsung Engineering, a construction and project management company in South Korea, has acquired a 24 percent stake in DNP Water, a leading private water treatment company in Vietnam, for $41 million. Vietnam will be used as a regional base for business expansion into neighboring countries.
The Vietnamese government has called for bigger private funding to meet growing demands for clean water and piped water. DNP Water has expanded urban water treatment and supply facilities through the construction of new bulk water treatment plants and the acquisition of privatized water supply companies.
Samsung Engineering would actively target Vietnam as a base for its expansion in Asia's water treatment market that is shifting from a loan business to private funding. The stake in DNP Water enables Samsung Engineering to have access to Vietnam's water and sewage treatment businesses.
Samsung Engineering aims to expand its model applied in Vietnam to neighboring Asian countries. "Samsung Engineering plans further to expedite and grow in the global environmental markets such as in Asia, by setting an example with successfully executing our environmental businesses in Vietnam," Samsung Engineering's executive vice president Kang Gyu-yeon said in a statement on June 30.
Samsung Engineering, known for global engineering, procurement, and construction (EPC) contracts, anticipated synergy by combing its abundant EPC experience and technology expertise in water treatment with DNP Water's experience and network in Vietnam
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