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CITIC Envirotech secures hazardous waste treatment project in Shandong, China
ENVIRONMENTAL solutions provider CITIC Envirotech (CEL) has secured a 315 million yuan (S$65.53 million) hazardous waste treatment project in Binzhou City of Shandong Province, China.
The project involves a 55 million yuan acquisition of Shandong Yunshui Jili Environment Protection Co, which owns the licences and land required for a hazardous waste treatment facility in Binzhou City, the mainboard-listed company said in a Singapore Exchange filing on Monday.
CEL will invest another 260 million yuan for the construction of the facility, which is targeted for completion within 12 months.
The design capacity of the hazardous waste treatment facility will be 60,000 tonnes per year, which consists of an incineration plant, a physical-chemical treatment plant and a landfill, with treatment capacities of 20,000 tonnes per year for each plant.
Binzhou, a prefecture-level city in northern Shandong Province, is highly industrialised and the treatment of hazardous waste has become a great challenge for the China government amid unauthorised hazardous waste disposal.
Given the more stringent environmental regulations and favourable policy trend, the hazardous waste management market is poised to expand, presenting an opportunity for CEL to demonstrate its capability and technologies in the sector.
The capital injection into this investment is from the proceeds of the issuance of the US$180 million senior perpetual securities pursuant to its US$750 million multicurrency perpetual securities issuance programme and bank financing.