GS E&C announced on the 8th that GS Inima, its Spanish subsidiary, has acquired a 30% stake in PMV (Phu My Vinh Investment & Construction JSC), an industrial water supplier in Long An.
PMV is a water treatment company operating two industrial water supply plants in Long An Province, adjacent to Ho Chi Minh City, and the shareholders are Malaysian water treatment company RBC(30%), GS Inima (30%), and Vietnamese investors(40%). In particular, most of the contracts are long-term (50 years), and as Vietnam's economy is overgrowing, the demand for industrial water treatment and supply which expected to increase significantly, making it a stable business with growth potential.
Vietnam is the fourth-largest economy in ASEAN (10 countries in the Association of Southeast Asian Nations), and GS Inima's acquisition of PMV's stake is an expectation of serving as an essential bridgehead for expanding into the Southeast Asian market. Through this acquisition, GS Inima plans to solidify its position as a global leader in the water treatment industry by expanding its business globally and advancing into the Asian water treatment market.
In particular, GS E&C is conducting joint research with the Singapore Water Resources Corporation to commercialize the world's first 'Seawater Desalination Renewable Energy Innovative Technology' developed in Singapore, the world's advanced water treatment market, so it is an expectation that there will be synergies in future market expansion.
Meanwhile, GS Inima entered the South American market by acquiring the industrial water business division of BRK Ambiental, the No. 1 company in Brazil's industrial water sector, through its Brazilian subsidiary in 2019. It has also entered the Middle East market by winning orders for the Al Gubra Phase 3 and Barka Phase 5 Independent Water and Power Plant (IWP) projects worth KRW 2.475 trillion.
Huh Yoon Hong, President of New Business, stated, "The entry into the Vietnamese market allows GS Inima to expand its water treatment business to five major continents except for Oceania. The water treatment business is the future growth engine of GS E&C, and this will solidify our position as a global leader in this field as a representative eco-friendly business in the ESG era."