Water Desalination New appealing factor for foreign investors
23-Jul-2012 Diario Financiero – News
Crucial procedure for mining development
Water Desalination New appealing factor for foreign investors
Singapore company to submit investment application for US$ 1,000 million this year
After a business tour throughout Southeast Asia, Executive Vice President of Foreign Investments Committee (CIE for its acronym in Spanish), Matías Mori, has reported that before the end of this year Hyflux, a Singapore company dedicated to water treatment and particularly to water desalination for mining industry, will be submitting an investment application to invest in Chile about US$1,000 million.
Some Singaporean companies are already investing in the country as it is the case of Sembcor that is settled in Antofagasta with a desalination plant providing services to large-size mining companies, Mori explained. “This company (Hyflux) is planning to visit our country during October and is already preparing its strategy”, Mori added.
CIE Vice President looked optimistic as to the results of this investment application and emphasized the potential the Asian Southeast has for foreign investment matters.
In fact, figures show that the Asian region increased foreign investments in 35% in 2011 to reach US$ 60 thousand million. The economies leading the rise ranking are Singapore with US$25 thousand million, 19% higher than 2011, Thailand with US$11 thousand million (96.3% rise) and Indonesia with US$ 8 thousand million (191% increase).
Besides Singapore, Mori also visited Vietnam where the interest of businessmen jumped out, although the business relationship is still in its preliminary stages.
“Our strategy has been set as Asia in general and China in particular, but Asian Southeastern countries have a 580 million consumers potential (…), so it is clearly an attractive market that must be duly worked on”, he added.
Some sources from CIE reported that first roundtables are already being set with Asian businessmen where interest has been evinced on airports, water, and mining industry matters.
“Amounts involved in desalination issues are rather high, we are not talking about small investments, some companies already have invested here and they can then start analyzing this market. However, many of these companies have a very inauspicious vision of risk, they do not take the risk to go to an international call for bids if they will be meeting with all local suppliers (…) The task here is to make them get acquainted with our reality and enter this market”, Mori explains.
It is his opinion that this growth potential “justifies the CIE going to Southeastern Asia to promote the opportunities existing in Chile because the CIE purpose is broadening the matrix of foreign countries investing in Chile”, and as Mori states, the entrance door is Asia. “World economy drivers are spinning and everything is pointing at that direction”, he concluded.
