Recycling Technologies

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.

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%.