Keppel Seghers, the environmental technology division of Keppel Integrated Engineering (KIE), has signed a strategic cooperation agreement with Passavant Impianti to address the sludge treatment market in Italy.

Mr. Ivan Christiaens, Global Head for Sales & Marketing of Keppel Seghers says, “The municipal markets for water and sludge treatment in Italy show a lot of growth potential over the coming five to ten years as Italy steps up its efforts to protect its environment. This partnership paves the way for Keppel Seghers to offer our state-of-the art HARDPELLETIZER and ZEROFUEL sludge treatment technologies to the Italian municipal markets.

“With its broad market penetration and vast experience in Italy, Passavant Impianti is the ideal partner for Keppel Seghers to strengthen our presence in this country. This is part of our continuous effort to grow our presence in Europe by establishing strategic partnerships with like-minded partners.”

Currently, Keppel Seghers is developing sludge drying plants in the cities of Bialystok and Czestochowa in Poland, as well as one of the largest sludge drying plants in the world in Chicago, USA.

This agreement will not have any significant impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2006.

Background information

Keppel Integrated Engineering (KIE)
Keppel Integrated Engineering (KIE) is the environmental technology and engineering division of Keppel Corporation Ltd, a leading company in Singapore listed on the Singapore Exchange Securities Trading Limited.

KIE is a leading provider of comprehensive environmental solutions, including alternative energy, ranging from consultancy, design and engineering, technology and construction to operation and maintenance of facilities.

KIE provides technology and fulfillment services for the treatment of municipal solid waste, hazardous and medical waste, wastewater and sludge treatment, potable water, desalination and home filtration systems.

To date, KIE has executed water, wastewater projects and waste-to-energy projects in more than 25 countries worldwide. KIE continues to actively pursue thermal waste treatment, water and wastewater treatment projects globally.

Keppel Seghers Hardpelletizer uses heat convection to evaporate water through a vertical, mult-stage, indirect drying unit. Sludge are turned into a valuable pathogen-free dried biosolids which are easy to handle, transport and store for long periods of time. The dried pellets can be used for different purposes such as soil improver or as green energy.

Keppel Seghers Zerofuel is an advanced technology that ensures maximum weight reduction and a complete inertisation of solid residues of the treated biosolids as well as minimal process emissions for a safe, economical and environmental-friendly disposal of biosolids.

Passavant Impianti S.p.A. (PI)
PI has been a leader in water and sludge treatment in Italy for over 50 years. The company's technology solutions include the entire spectrum of water purification and sludge recycling for both residential and industrial wastes. It also provides expertise for planning, design, implementation, and operation of plants.

For further information, please contact

Teo Chang Ching
Senior Executive
Group Corporate Communications
Tel: (65) 64136426
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