De.mem (ASX:DEM) signs fourth contract with Givaudan

• De.mem (DEM) signs its fourth build, own, operate (BOO) contract with Switzerland-based manufacturer Givaudan
• Under the six-year contract, De.mem will build, own and operate a wastewater treatment system to be deployed to Givaudan’s factory in Singapore
• De.mem will incorporate its Ultrafiltration membrane as a key treatment step in the plant, combined with its specialty chemicals and other wastewater treatment processes
• The contract will generate at least $2.1 million in revenue for the company
• Company shares end the day trading flat at 13.5 cents

De.mem (DEM) has signed a new build, own, operate (BOO) contract in Singapore with Switzerland-based Givaudan.

Founded in 1895, Givaudan is a multinational manufacturer of flavours, fragrances and active cosmetic ingredients for the health and wellness, beauty, and homewares markets. In 2021, Givaudan made CHF 6.7 billion (A$10.07 billion) in sales.

Under this contract, De.mem will build, own and operate a wastewater treatment system to be deployed onsite at Givaudan’s factory in Singapore.

The new plant will incorporate De.mem’s proprietary Ultrafiltration membrane as a key treatment step, combined with its specialty chemicals and other wastewater treatment processes.

The contract has a minimum value of around A$2.1 million of revenue payable over a six-year term.

Importantly, the BOO contract marks De.mem’s fourth with Givaudan which the company believes shows its continued focus on land expansion opportunities and the cross-selling of its extended product range.

De.mem CEO Andreas Kroell said the contract highlights the company’s “long-standing relationships” with high quality, global institutional clients.

“It follows De.mem’s expansion strategy of building strong key accounts and long term business relationships with industrial clients that operate multiple sites,” Mr Kroell said.

“Our BOO model offers clients convenience and simplicity, whilst generating recurring, long-term revenues for De.mem. Our in-house membrane technology and specialty chemicals range provides a competitive advantage over our peers.”

Company shares ended the day trading flat at 13.5 cents.