Sep 21, 2010 0

Huntting treasure in the Medical waste market in China

Categories:  Market Analysis, Solid Waste Disposal
Tags: ,

Goldman Sachs invested to Daifu Waste to hunt treasure in the Medical waste market in China.

Source:China economic herald

Publication Date: 2010-9-20 by Cui Diao

Fashionable investors even spotted the business of “Picking garbage” , such an incredible scene has happened on the famous Goldman Sachs recently. Goldman Sachs invested millions of dollars on domestic medical waste companies – Daifu Waste Environmental Technology Co., Ltd., becoming its largest institutional shareholder. Precident of Daifu Waste Yuting Zhuang revealed recently: “We are currently preparing a second round of financing, the amount will be higher, it is estimated will be completed within a few months.”
In the eyes of people outside the circle, this may be the love of “Prince” and “Cinderella”, but the people inside view, Goldman Sachs has found a “treasure” in China’s medical waste market.
Yuting Zhuang said to take a 200 million population of the prefecture-level city for example, in general, will have 8000-10000 beds, each bed one day pay two yuan to 2.5 yuan, which means there are 700 million cost per year. If the urban population of less than 2 million, the bed is generally between 5000-8000, the income available to Daifu Waste is 3 million yuan to 700 million per year.
The potential  value in hospital medical waste market is over $ 2 billion
Medical waste is the infectious, toxic and other hazardous waste produced by medical and health institutions in the medical process directly or indirectly,, including surgery, dressing, biological training, laboratory testing of residues, infectious waste generated, disposable syringes and so on. In recent years, as China’s health development, the amount of waste generated by health care institutions is more and more, which also makes medical waste disposal industry in China need to be developed rapidly.
In 2009, China produced potential medical waste 107 million tons (by bed 330 days, out 260 days total)  by more than 90 ten thousand medical institutions, the total amount of at least , is 1.8 times in 2004. According to estimates, in 2009 China’s potential market for medical waste disposal capacity of 3.1 billion yuan, of which the hospital medical waste market, which accounted for 2 / 3, ie more than 2 billion yuan of the potential capacity of the hospital medical waste market.
With economic development in China, the level of public health is rising, there is a huge room for expansion of the medical waste disposal industry for a long time, and with the national attention on medical waste disposal, environmental protection industry will be a medical absolutely tempting cake . As a master of capital operation, Goldman Sachs aimed at this big cake, determined to enter the Chinese medical waste disposal market.
Capital and technology to promote the integration of medical waste treatment industry
At present, medical waste disposal industry is still in early stages of development. Not only in most cities there is a lack of specialized medical waste disposal centers, also, the backwardness of technical and the performance of the disposal of is incomplete. Thus, the entire industry need multilateral efforts, including relevant government departments, hospitals, environmental protection departments, operators and equipment vendors.
According to the latest public information from the department of environmental protection, the country has built more than 180 medical waste disposal plant. In other words, there are more than 80 percent of the city has no specific medical waste disposal centers or specialized handling equipment. Some cities and regions of hospitals and medical institutions and even dispose of medical waste generated by hospital medical secretly, waste management is directly related to urban environmental quality and health of surrounding residents.
Currently, a nationwide medical waste disposal business are less than 200, but the real disposition in accordance with regulatory requirements, standards and ability to achieve safe disposal of enterprises which accounted for only about 1 / 4. In recent years, as the government’s environmental protection cause the attention and support of China’s medical , some social capital, investment and acquisition of medical waste disposal companies appeared. But now, the market is still very fragmented, the share of the largest operators is still less than 5%.

 

 

Sep 03, 2010 0

Solid waste treatment industry will be invested over 500 billion yuan by the central government in China

Categories:  Market Analysis
Tags: ,

“Securities Daily” 2010-08-18

Experts predict that during the project of “The Twelfth Five-year,” The investment in China Environmental Protection Industry reached 3.1 trillion yuan, of which solid waste treatment industry reached 800 billion yuan.

Recently, a source said, during “The Twelfth Five-year” period, the central government will invest over 500 billion yuan for solid waste treatment. Among them, 100 billion yuan for municipal solid waste, 1,000 billion for water treatment plant sludge, 3,000 billion yuan for the basin sludge treatment.

Industry researchers believe that China’s solid waste treatment industry is still in early stages of industrialization and the degree of market concentration is still very low. However, due to the policy-driven, the industry is entering a rapid growth of the inflection point is expected to scale of the industry’s rapid growth is expected to last more than 10 years. This shows the central financial management to increase the degree of attention to environmental protection, it is expected there will be initiatives related to environmental tilt, solid waste treatment industry entered a golden period of development.

Statistics show that currently, China’s environmental protection industry in the construction phase of infrastructure, environmental infrastructure investment will be significant growth trend. China’s annual output of 1.5 million tons of garbage, city garbage heap accumulated stock of over 70 million tons. The amount of municipal solid waste output by 8% -10% annual growth rate, but a complete waste disposal fees and uniform pricing mechanism has been established, limiting the progress of its industrial development.

In the first half of this year, at “the notice of the State Council on further intensify its efforts to ensure the realization of ‘ The Eleventh Five ‘ emission reduction targets “, the State Council to reform the waste disposal fee charging method, the new urban sewage treatment capacity of 15 million tons of garbage day processing capacity of 60,000 tons. The government will invest 33.3 billion yuan in the central budget, central government funds 50 billion, focusing on ten key energy conservation projects and pollution control construction.

The “2010 China’s urban solid waste industry investment analysis report” released by China Solid Waste Network expected, during “The Twelfth Five-year” period, the capital investment will be increased substantially  compared with “The Eleventh Five-year” period in China’s urban life treatment and disposal market, in the next five years,  a comprehensive deal with the costs of dealing garbage increased will become the trend, over the next 10 years, annual investment for waste power generation industry will reach 80 billion.

Century Securities researcher said that the new energy industry in recent years will be China’s booming industrial solid waste treatment period, similar to the current development status of solid waste treatment in sewage treatment industry a decade ago, the future of industry compound annual growth rate of at least 30%.

The vice president of Environmental Protection Department of Environmental Planning in China Wang Jinnan predicted that “five” period of China’s environmental protection industry investment reached 3.1 trillion yuan, of which solid waste treatment industry reached 800 billion yuan, compared with the “Eleventh Five-Year” period quadrupling In 2020, investments in solid waste is expected to remain at an average annual compound growth rate of 18% or more.

From the current waste disposal methods and the pursuit of market point of view, garbage incineration power generation will become the industry concerned about investment. Donghai Securities analysts believe that advanced composting and incineration of waste treatment facilities for investment in total investment accounted for 60% -70%, with core business skills and experience can be shared to maximize the growth of the industry to bring high return on investment.

It is understood that in developed countries, solid waste treatment industry has developed rapidly. Since 1973, after the oil crisis, governments of developed countries to actively encourage and guide the full recovery of solid waste and recycling, and given the level of policy and legal protection. After 30 years of development, solid waste disposal industry developed rapidly. Incineration plant in Japan, all cities have adopted energy recovery systems, power generation and networks for personal use or sale of electricity.

Source: Securities Times

 

 

 

 

 

 

 

 

 

 

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