De.mem accelerates Australia expansion with $550,000 Queensland contract

De.mem ASX DEM waste water expansion contract Queensland

Singaporean-Australian water and wastewater treatment company De.mem Limited (ASX: DEM) is keeping up the pace on its expansion into Australia.

De.mem announced today that it has won a $550,000 contract to deliver and install two water treatment systems for St Hilliers’ $6 million Shoalwater Bay Training Area Vehicle Wash Point Facility project in Northern Queensland.

The systems will use Reverse Osmosis (RO) membranes, Dissolved Air Floatation (DAF) and De.mem’s advanced automation technology. There is also a service component to the contract as De.mem will provide operations and maintenance for 12 months after handover.

This is the sixth contract that De.mem has won through its 100%-owned Australian subsidiary Akwa-Worx. The total value of all six contracts is around $1.1 million.

De.mem acquired Akwa-Worx, a leading provider of water and waste water treatment systems based in Caboolture, Queensland in September. Following the acquisition, De.mem secured five contracts from Queensland’s mining, industrial, and municipal sectors worth approximately $550,000.

Akwa-Worx has a number of clients in Australia’s mining sector and produces Ultra Filtration (UF) and RO systems and Membrane Bioreactors (MBRs). The company holds an exclusive worldwide licence from Nanyang Technology University for an innovative nanofiltration (NF) membrane which combines UF and RO into a process that is more energy efficient, cost-effective and easy to maintain than standard RO filtration.

De.mem says the acquisition presented strategic growth opportunities including accelerated revenue growth, increased exposure to the mining sector, an expanded market for the company’s nanofilter membrane and a platform for continued expansion.

De.mem’s ambitions also go beyond Australia. Following an oversubscribed raising of $2.5 million earlier this month, the company announced that it had expanded into a China through a non-binding Memorandum of Understanding (MOU) with Virtual Curtain China Limited (VCCL).

“These are certainly exciting times for De.mem,” said CEO Andreas Kroell in a press release. “Our expansion into Australia through the acquisition of Akwa-Worx has been very successful and we are now exploring the possibility of entering the China market via an MOU with VCCL.”

De.mem’s share price closed the trading day up 3.7% to 28 cents following today’s announcement.

Filip has written in both Australia and abroad during his career, covering everything from the global economy, politics and geopolitical issues to commodities and small cap stocks on the ASX.