A TIE-UP between the Sembawang Group and the Bechtel Group of the United States could take off this year if negotiations for a power plant contract in China come through.
The contract, worth hundreds of millions of US dollars, will mark the first project of their alliance to develop large-scale infrastructure in Asia-Pacific countries.
Yesterday, Sembawang and Bechtel formally sealed their union by signing a contract to create an equal joint venture, Sembawang-Bechtel Enterprises.
Their stakes will be held through their respective wholly owned subsidiaries, Sembawang Engineering and Bechtel Singapore Enterprises Inc.
Sembawang Engineering executive chairman Cheong Quee Wah signed on behalf of Sembawang while Bechtel Singapore chairman Cordell Hull represented Bechtel.
Sembawang-Bechtel will have initial paid-up capital of US$2 million.
Mr Cheong told reporters after the signing that negotiations for the China deal could be finalised this year.
