FlSmidth and Sino Environment Engineering Development Company Ltd (SEPEC), China, are to enter into a joint venture agreement that will target the Chinese cement industry with air pollution control products. The new venture, in which FlSmidth own 62% and SEPEC own 38%, will go under the name of FLSmidth SEPEC Environmental Engineering Co. Ltd.
With the aid of SEPEC’s domestic knowledge of the cement industry, the venture will sell FLSmidth’s air pollution control equipment to the Chinese market in a bid to satisfy increasingly strict emissions controls. The newly formed FLSmidth SEPEC also aims to sell its products to companies that operate biomass fired boilers and waste incineration plants.
The joint venture will be based in China and will operate out of SEPEC’s Beijing offices. It is expected to have around 120 employees. Although the two companies have both signed the venture agreement, they are awaiting approval from the Chinese government, which will enable the agreement contract to become effective. It is anticipated that government approval will be granted in late February 2012.