Phoslock Water Solutions (ASX:PHK) is in the final stage of establishing a multi-purpose manufacturing facility in Changxing, 150 kilometres from Shanghai, China.
The company’s PHOSLOCK technology is used to treat water by starving algae of phosphate, thereby preventing its growth.
A rapidly growing order pipeline in China has necessitated Phoslock to construct a manufacturing facility in the Chinese economic zone of Changxing.
The new factory has the capacity to meet the rising demand for antipollution measures underpinned by the Chinese Government’s stated aim of targeting waterborne pollution.
PHOSLOCK production will commence at the rate of 5,000 tonnes per annum (tpa). Factory capacity will initially be 15,000tpa with the ability to rise to 45,000tpa.
This is the first time in China that Phoslock will have complete control over all aspects of the manufacturing operation.
Furthermore, Phoslock is forming a new wholly-owned subsidiary in China to focus on engineering solutions for polluted Chinese water bodies.
The company is expanding its product range to include remediation of nitrates and bacteria, in addition to the treatment of phosphate in water bodies.
Chinese water conditions require the comprehensive use of water remediation products such as PHOSLOCK, zeolites and other complementary inputs.
Phoslock’s shares were last trading 9% higher intra-day on Tuesday, at $0.12.