The China Gezhouba Group Overseas Investment Co, a subsidiary of China Gezhouba (CGGC) will spend up to US$200 million to acquire Brazilian company Sistema Produtor São Lourenço (http://www.spsl.eco.br/), the group said in a statement on Thursday.

The group also reported that after the purchase of the Brazilian company, its subsidiary may acquire the rights to the programme to supply water to the state of São Paulo which, when completed, will serve 1.5 million residents.

Having started operations in April 2014, the Brazilian company expects to complete this project in February 2018 and start the marketing process in August 2018, the Chinese group said in a statement quoted by the China Daily newspaper.

Lucas Fan, responsible for CGGC’s operations in Brazil, recently told the Sao Paulo Times that the group’s interest in the largest country in Latin America is focused not only on renewable energy but also on the sanitation and logistics sectors.

Sistema Produtor São Lourenço is a Special Purpose Company created in 2013 to provide operation and maintenance services for the dehydration, drying and disposal of sludge and maintenance of the São Lourenço Production System, as well as to implement the works of this project belonging to sanitation company Companhia de Saneamento Básico do Estado de São Paulo (Sabesp).