CDT enters cooperation agreement with construction group subsidiary

CDT Environmental Technology announces the signing of a strategic cooperation agreement with a subsidiary of a large state-owned construction group in China. The parent company of the state-owned construction group is among the top 40 in ENR’s 2023 ranking of the world’s largest contractors. Under the terms of the agreement, the two parties will jointly plan and build a number of infrastructure and construction projects in Fuzhou New Area, involving water, sewage treatment, roads, and pipelines, with an estimated value of more than RMB 3 billion — with an estimated 1 billion RMB net to CDT — which will contribute to an expected increase in CDT’s revenue by more than 50% in the next 3-5 years. Fuzhou New Area is the 14th State-level new district in China, established in September 2015, and is expected to model a new path of urbanization and promote the integrated development of urban and rural areas. Fuzhou New Area is located in the coastal area of Fuzhou, which is the capital city of Fujian Province, with a planned area of 800 square kilometers and a current permanent population of 1.55 million. While leveraging each party’s particular expertise, they will also share resources and improve project competitiveness and operational efficiency. As a local company, CDT has local network resources and market influence, while the large state-owned builder is positioned with the resources and financial strength to bid for the largest and most desirable projects throughout the region. The cooperation between the two sides is expected to produce synergies.