C&G Environmental Protection Holdings Limited announce that it has recently started construction of a new WTE plant located in Xiaogan City , Hubei Province. The Xiaogan plant will be completed in two phases, with phase 1 to commence operations in the first half of 2012, and Phase 2 to commence operations in one to two years after Phase 1 starts operations. The designed waste treatment capacities for Phase 1 and Phase 2 are 700 tons per day and 350 tons per day respectively.

 /sgx masnet/

 

By LYNETTE KHOO

 

C&G Industrial Group has secured two new built-operate-transfer projects in Fujian province to treat solid waste with an estimated total cost of investment of 600 million yuan (S$122.6 million).

 

These projects, located in Nanping city and Jianyang city, are slated for completion in 2012 and will each have a designed treatment capacity of 600 tonnes per day.

The contracts are secured by the group's wholly-owned subsidiary C&G Environmental Protection International Limited (C&G EPIL) for a concessionary period of 30 years.

C&G said the costs will be fully funded from internal resources and borrowings at the project companies' level.

'We are eager to leverage on our early mover success and secure more quality waste-to-energy (WTE) projects in the PRC,' said Lin Yan, group executive director. 'Backed by strong government support, technological know-how and management expertise, we are in a favourable position to gain a strong foothold in the growing PRC renewable energy sector.'

With the addition of these two new projects, C&G EPIL will have a total of nine WTE projects across four provinces - Fujian, Hubei, Hebei and Liaoning provinces - in China with a treatment capacity of 9,000 tonnes per day for municipal solid waste.

According to the group, C&G EPIL currently ranks among the top three WTE players in China based on its secured treatment capacity.

The WTE firm was recently acquired by the group for the 563.7 million yuan transaction through the issue of new shares.

This move thrust C&G Industrial into the energy sector. The group, which has been battling with declining margins and sales in its core textile business, is open to the option of divesting its textile business if there is an offer with a good price.

C&G general manager of corporate finance Eddie Mak told BT yesterday that the group has spoken to interested parties but nothing has been firmed up yet. Any divestment would have to be at a consideration of not less than the net tangible assets of the business, excluding cash, he said.

But contributions from C&G EPIL starting from this quarter will not result in an initial jump in group earnings as the WTE firm has only one plant in Jin Jiang city that is commercially operating, and which earns an annual profit of close to 10 million yuan.

C&G EPIL's contribution to group earnings will gradually increase as phase 2 of the Jin Jiang plant is completed in the second quarter, the construction of three other plants are completed by the end of this year and another three plants by 2011.