Brief
In 2020, Wuxi Xishan Water Group Co., Ltd. (hereinafter referred to as Xishan Water) proposed to cooperate with GreenTech Environmental Co., Ltd. (hereinafter referred to as GreenTech Environmental) on NEWater and environmental protection business regional investment and operation center project. After mutual investigations and discussions, both parties agreed that Xishan Water and Sino Dutch Water Investment Group Limited (HongKong) (hereinafter referred to as Sino Dutch Water), a wholly owned subsidiary of GreenTech Environmental, set up a Sino-foreign joint venture in Wuxi Xishan Economic and Technological Development Zone to jointly invest in this project.
Result
As the legal counsel for Xishan Water in this project, DeHeng team, led by Partners Wang Jianming and Zhang Cheng from the Wuxi Office, advised Xishan Water to successfully establish joint venture with GreenTech Environmental. DeHeng team provided comprehensive and integrated legal services, including due diligence on GreenTech Environmental, negotiation on the specific path of the joint venture project, issuance of due diligence report on this project, review and modification of relevant legal documents on the establishment of the joint venture, and provision of advices on specific legal issues of this project. The joint venture was eventually established in Wuxi in December 2021 and is in normal operation at present.
Comments
The project not only improves the recycling rate of water resources in Xishan District, to meet the higher standard water demand of relevant industrial enterprises, but also contributes to freeing up environmental capacity and supporting regional industrial development. The cooperation between Xishan Water and GreenTech Environmental is conducive to the integrated development of state-owned capital and various types of social capital of Xishan District, to promoting the further rationalization of Xishan water market and the further improvement of the layout of the whole industrial chain of sewage treatment, and to meeting the urgent needs of Xishan District to improve the reclaimed water reuse system.