Fluence wins US$3.2m contract to upgrade Egyptian desalination plant
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Fluence Corporation (ASX:FLC) has strengthened its hold in the Egyptian market winning a contract for a local desalination plant.
This morning it told shareholders it won a contract to rehabilitate and upgrade a 12,000 cubic metre per day seawater reverse osmosis desalination plant in Egypt.
Reverse osmosis is essentially a desalination process that weakens the properties, particularly salt, that make seawater undrinkable.
The contact is worth US$3.2 million ($4.5 million). The company predicts the work will be complete and operational by late summer 2021.
The plant will serve the key tourist city of Sharm El Sheikh which in 2019 welcomed 13.6 million visitors.
The contract is not the first or even the largest Fluence has won in Egypt.
In October 2018 it won a US$7.6 million order for its NIROBOX solution and in March 2019 won a US$20 million contract to be the tech provider for a brand new desalination plant at Mansoura.
CEO Henry Charrabe said the contract win strengthened his company’s position as “a growing and innovative provider of water treatment solutions”.
He also reminded Fluence shareholders even though the company was solid in Egypt, Egypt was not its only market.
But Charrabe didn’t name other specific markets, simply saying the key element of Fluence’s growth strategies were to target geographies facing water shortages and help build sustainable communities.
Fluence rose 7 per cent at market open this morning. But they are below the highs seen in 2019 when the broader sector rallied.