Water purifier De.Mem is going from sewage to whey — buying into a foodbusiness in Singapore to get its water filtration technology into a new market.

The Singapore-based, Aussie-listed business (ASX:DEM) has bought 32 per cent of water membrane maker Aromatec for $S100,000 ($99,682).

Aromatec started in February this year to commercialise a university-developed membrane designed to “de-water” food products such a flavourings, fruit juices, dairy and whey.

The membrane is expected to be ready “in the coming months”.

This is a first for $8.5 million De.Mem, which has until now focused on water purification in Vietnam and on its Australian water treatment business Akwa Worx.

De.Mem’s technology is used at the end of water treatment, where liquid is passed through a membrane which allows only water molecules to pass through.

 

“This is not only highly complementary to our existing customer base in this market segment, but also leverages our capability to build water treatment systems into process water treatment applications,” De.mem CEO Andreas Kroell said.

“This opportunity provides De.mem with access to a significant opportunity in the food & beverage segment, a market valued at $US5.8 billion per year.”

De.Mem has struggled to get its share price moving upwards after listing in April last year.

Although today’s news pushed shares up almost 3 per cent, they remain near 52-week lows of 17.5c.

De.Mem has been making acquisitions and winning business over Asia, but investors really don’t seem to like water.

 

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