The 190-hectare development will be added to wholly owned subsidiary Sembcorp Development&rsquo s portfolio, the group said. 

SEMBCORP : U96 +1.34% has obtained an investment licence for an industrial park project in Ha Tinh, Vietnam. The 190-hectare development will be added to wholly owned subsidiary Sembcorp Development&rsquo s portfolio, the group said on Friday (Dec 29).

 

The investment licence was awarded to the Vietnam Singapore Industrial Park and Township Development Joint Stock Company (VSIP JSC), a 46.5 per cent-owned joint venture with Vietnam state-owned enterprise Becamex IDC Corporation.

 

This month, an in-principle approval was also received to develop VSIP Quang Ngai II. This is an expansion from the first VSIP Quang Ngai, which was set up 10 years ago.

 

Sembcorp Development chief executive Lee Ark Boon said the new investment licence for the first phase of VSIP Ha Tinh adds to the investment licences received earlier this year for VSIP Lang Son and VSIP Nghe An II.

 

&ldquo With the additional land bank pipeline secured from these projects, we will continue to focus on driving Sembcorp Development&rsquo s growth in Vietnam,&rdquo he added.

 

Ha Tinh, which is located in Vietnam&rsquo s northern central region, neighbours the Nghe An province and is a prospective industrial hub. It benefits from one of the region&rsquo s largest natural deep-sea ports, Vung Ang Son Duong port, which serves provincial and regional activities. It also potentially bridges connections from transshipment ports such as Singapore and Hong Kong.

 

Manufacturers at VSIP Ha Tinh can tap the planned cargo consolidation point and international logistics hub, replacing the need for goods to be transported via the northern ports, Sembcorp said.

 

VSIP JSC will incorporate a wholly owned subsidiary in Vietnam to pursue development activities for the first phase of VSIP Ha Tinh. This is expected to be completed in the first quarter of 2024, the group said.

 

It does not expect the project to have any material impact on the group&rsquo s earnings per share and net tangible assets per share for the financial year ending Dec 31, 2023.

 

SEMBCORP Industries : U96 -1.74% is partnering listed Japanese corporates Sojitz Corporation and Kyushu Electric Power to pursue potential opportunities for green ammonia production in India for export to Japan.

 

On Monday (Dec 18), Sembcorp said its subsidiary Sembcorp Green Hydrogen signed a memorandum of understanding (MOU) with Tokyo-headquartered general trading company Sojiz and Kyushu Electric, an energy supplier based in Fukuoka.

 

The MOU was presented at the Dec 16 Asia Zero Emission Community Leaders&rsquo Meeting hosted by Japan&rsquo s Ministry of Economy, Trade and Industry.

 

Subject to a final investment decision and the finalising of supply arrangements, the three consortium partners also intend to construct green ammonia facilities in India, with Sembcorp as the lead developer.

 

Sojitz and Kyushu Electric will oversee the transport of the green ammonia to Japan, and secure off-takers in the country.

 

Sembcorp said it does not expect the MOU to have a material impact on either the group&rsquo s earnings per share, or its net tangible assets, for the current financial year ending Dec 31, 2023.

 

It views the agreement as part of the group&rsquo s strategic transformation of its portfolio &ldquo from brown to green&rdquo .

 

&ldquo With green ammonia as a critical energy source to decarbonise Japan&rsquo s power supply mix, the partnership will support the government&rsquo s goal to achieve net zero by 2050. This partnership also reflects the strong commitment by Japan, India and Singapore towards the development of cross-border hydrogen supply chains.&rdquo