Beijing Enterprises Water Group Ltd. (00371.HK) aims to expand its capacity by 5 million tonnes on average each year in the coming three years, its president, Zhou Min, said.
Zhou said the firm wants to become one of the top 10 water treatment companies in the world by 2018.
The company’s estimated capacity will reach 40 million tonnes per day by 2018, he said in an interview with the Hong Kong Economic Journal published Wednesday.
Water treatment and related environmental protection will be a huge market in the next 10 to 20 years given the country’s supportive policies and initiatives launched in April last year, the HKEJ quoted chief executive Hu Xiaoyong as saying.
Given fiercer market competition, however, the firm is expecting a lower internal rate of return as it acquire new projects.
The IRR obtained from new projects last year averaged 9 percent, compared with a level of over 10 percent in 2014.
Zhou said the company aims to maintain the level at above 9 percent in general and at least 7 percent for certain low-risk and large-scale projects.
The firm plans to invest an estimated total of 15 billion yuan (US$2.28 billion) to 16 billion yuan in capital expenditure this year.
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