Daegu City Signs JV Deal with Chinese Firms for Wastewater Treatment Business

Daegu City Signs JV Deal with Chinese Firms for Wastewater Treatment Business

The Daegu metropolitan city government will move into the wastewater treatment business in China by establishing a joint venture among Chinese and Korean companies and a Chinese local government. The city government said on December 14 that a signing ceremony for the 400-million-yuan (US$62-million) joint venture was held on the same day in Yixing, Jiangsu Province, with Daegu Mayor Kwon Young-jin, president of the Daegu Environmental Corp., Yixing Industrial Park for Environmental Science & Technology director Zhu Xufeng, and others were in attendance.

The partners to the 49:51 joint venture include the Daegu Environmental Corp., EnbioCons Co. from Korea and the Yixing Industrial Park and Jiangsu Philip Environment Engineering Co. from China. Beginning from January this year with the launch of the much-strengthened new environmental law, a market of 8 trillion yuan ($1.24 billion) is likely to be created by 2020. A Daegu city government official explained, “This is a whole new approach in which a local autonomous body works with Chinese local government and corporate partners.”

EnbioCons is a company specialized in waste treatment and recycling, with a technology to turn wastewater sludge into solid fuel. It will receive about 100 million yuan ($15.5 million) for technology licensing fee separately from the latest deal. The Yixing Industrial Park is directly under the Chinese Ministry of Environmental Protection and the Ministry of Science and Technology. Philip Environment Engineering, established in 1999, is specialized inwastewater treatment  and has five affiliates under its wings.

 Sourced by ekomeri.com