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FLANDERS INVESTMENT & TRADE MARKET SURVEY
THE WATER
TREATMENT INDUSTRY
IN CHINA
The Water Treatment Industry in China
2014
Flanders Investment & Trade Beijing
Paheerya Yushan
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Disclaimer
The information given in this publication is intended as background information. It is with the greatest of care that we collected this information based on the available data and documentation at the time of publication. This publication does therefore not have the ambition of completeness or validity for your specific situation. They can therefore never be regarded as legal, financial or other specialist advice. Flanders Investment & Trade (FIT) cannot be held responsible in the sense for any incorrect entries, omissions or inaccuracies in this publication. FIT cannot be held responsible for the use or interpretation of information contained in this publication. References in this publication to specific entities, companies and / or individuals have no specific recommendations in which Flanders Investment & Trade could bring some responsibility.
Market overview Fast development and economic growth brought serious issues to China these years. Pollution is one of the main serious issues China is facing at the moment. Pollution control and treatment is not at the same speed with pollution itself. In China, in certain industries It`s cheaper to pollute than to clean it up or prevent it. One of the important problems is water pollution.
On the other hand, from a business perspective, China`s great potential is due in large part to the continued economic expansion in China, which is currently unparalleled elsewhere in the world and creates growth in demand for industrial water treatment chemicals and other products.
Some facts and figures about China’s water treatment industry:
China`s waste water volume is comparable to the Yellow river`s annual flow; in 2012 for example, the total discharge of waste water in the country amounted to 68.5 billion tons.
China`s wastewater pipe network can circle the earth 10X (a total of more than 414,000 km in length).
High speed urbanization=high speed rise in domestic waste water; with the high growth in urbanization domestic wastewater volume has outpaced industrial wastewater volume in China.i
By 2014, there are 3622 waste water treatment plants in China, waste treatment capacity is 153 million cubic meters/day. Waste water treatment is one of the main green environment industries in China. Based on the report from the state organization, in the 12th “5 year plan (FYP)”, the government will invest 430 billion Yuan for city and urban waste water treatment projects and expects 20% increase from the previous FYP. Despite these efforts, significant investment is needed to increase treatment rates to reach the target build-out of waste water treatment plants for nearly 300 cities in China which currently do not have such facilities, by 2015.ii Furthermore, to tackle water pollution, the government is trying to increase penalties for violations, Name & Shame SOEs, introduce Water & Soil Pollution Prevention & Control network plans as well as to add the following industry-specific standards in 2013:
Discharge Standard of Water Pollutants for Ammonia industry;
Effluent Standards of Water Pollutants for Citric Acid industry;
Prevention& Control on Co-processing Solid Wastes in Cement Kiln;
Emission Standards of Pollution for the Battery industry;
Discharge Standard of Water Pollutants for Leather& Fur Making Industry;
Some standards are even more stringent than the ones in developed countries, whereas some high pollution industries have yet to establish their industry-specific discharge standards.
From the waste water treatment business view, the market for water treatment products in China in expected to grow 10.3 percent annually to 46.6billion yuan in 2015. The dominant industrial market will offer the best growth opportunities, outpacing the municipal sector. Water treatment chemicals will remain the largest product category, while nonchemical equipment will grow faster.iii
In the upcoming years, the water pollution problem is one of the serious issues for the country. With the fast growing economy, there is a stronger need in china for waste water treatment for a wider scope as well as a better technology. At the moment, city wastewater treatment level is 70%, and based on the 12th “5 year plan”, national level expectation is to increase the waste water treatment level to 85% percent.
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Furthermore, requirement is increased to “first class A” from “first class B”1. All this new industry expectation will require the companies to increase the investment in “equipment, technology improvement projects”.iv
The current situation is, waste water treatment plants are more focused on the east and north part of china, and it`s expected to move more to the middle; main focus is in the city and it`s expected to move towards the suburban and rural areasv. So for the future, there is a big market for the companies with rich experiences and better technology. There are more than 30,000 towns and villages in China. So in theory, if there is one wastewater treatment plant for one village, there is a need for 30,000 waste water treatment plants for the future. So in practice, there is a strong need for creative management model for wastewater treatment in the rural area in China. Especially, considering the fact that most of the villages are small with small population, having small plant will be expensive to run and maintain. In 10 years from now, China will need a better creative waste water treatment model (business model, technology, and management process) for the developing rural area.vi
From applied wastewater treatment technologies sidevii, the predominant treatment process in China is Conventional Activated Sludge Process (CASP) and treatment based on CASP, namely Oxidation Ditch (OD), Sequencing Batch Reactors (SBR), Anaerobic/Anoxic/Oxic(AAO), Anoxic-Oxic(AO) processes (the listing order is descending in popularity). Less widely used are biofilm processes, membrane bioreactors (MBR), natural biologic treatment systems (e.g. constructed wetland) and anaerobic biologic treatment systems.
Except the growing demand in the market, for foreign companies who are planning to enter the Chinese market or expand their business in China, one positive news is: government is slowly opening up the environment protection industry (including the waste water treatment industry) to private companies. So compared to before (when only state owned companies could take big projects), private companies with strong technology and financial capacity, can also involve in environmental projects by open bidding process. In water treatment industry specifically, industrial waste water treatment projects and seawater treatment projects are opened up to the private holding companies, but city water treatment is still mainly operated by state owned companies. But this “open market” is still limited to local companies only.viii So cooperating with local companies (co-projecting, co-financing, cooperation in R&D) is the recommended way for foreign companies to do business in clean tech and water business. As in certain product and technology fields, Chinese local companies are still not as good as the companies in developed countries, and wastewater management capacity doesn`t match the demand on the market, Chinese companies are very open for foreign companies to cooperate in this field as well.ix
1 First class A, First Class B: For waste treatment factories, there is a quality evaluation based on the quality of the treated water (percentage
of different chemicals, For example, to meet First Class A requirement, COD, NH3-N percentage needs to reduce to certain level.
The Water Treatment Industry in China 5
Main Players in the Water Treatment Industry As stated in the previous chapter, the strongly recommended way to enter Chinese market is to work with local companies. In this chapter, you will find main companies in North China in water treatment industry. A small introduction will be given to give you a better understanding about each company’s background, main business, and competitive advantages.
1. 北京首创股份有限公司 Beijing Capital CO.,LTD
As a state owned, listed company, Beijing capital`s main focus in on the investment, construction, operation and management of wastewater treatment plants. Now this company involved in water projects in 42 cities in 17 provinces. And they also have cooperation with western companies.
Contact person: GUO Peng (Board secretary)
Tel：010-64689035 Fax：010-64689030
E-mail：[email protected] Web: http://www. capitalwater.cn
2. 北京碧水源科技股份有限公司 OriginWater
A high-tech enterprise with the registered capital of 1 billion and net assets of more than 5 billion, Origin Water owns near 30 branches throughout the country. Listed in the Small Enterprise Board of Shenzhen Stock Exchange.
Contact: Dai Richeng (general manager) Tel: 010-80768888 Fax: 010-88434847 E-mail: [email protected] Address: Life Science Park Road, Haidian District, 23-2
3. 桑德环境资源股份有限公司 Sound Environmental resources CO., LTD
Listed company in Shenzhen stock exchange market, Sound environment is the top player in the market. They have advanced technology and rich experiences waste treatment, water treatment and other environmental projects. They won “Top ten influential enterprises in solid waste industry”. “Hundred listed strong company in China” in 3 years in a row. They are invested and involved in more than 50 projects in waste treatment and water treatment all around China. Contact: KONG Weiyuan (business development manager, International business department) Tel: 010- 60597043/ 13810639350 Fax: 010- 60504480 E-mail: [email protected] Web: www.soundenvironmental.cn / http://www.soundearthinc.com/
4. 中国节能环保集团公司 China Energy Conservation and Environmental Protection Group
China Energy Conservation and Environmental Protection Group Corporation is China's largest cooperation in energy-saving and environmental protection field. At present, they have 419 subsidiaries, six listed companies all around the world. Contact: CUN Wei (cooperation& development department international affairs, business manager) Tel: +86-10-62248853
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Fax: +86-10-62247316 Mobile: 13911565176 E-mail: [email protected] Web: www.cecep.cn
5. 中环水务建设有限公司 Zhonghuan Water Treatment Construction Co., Ltd
Zhonghuan Water Treatment Construction is one of main subsidiary of General Water in waste water treatment business.
Contact person: LI Jingfang (project manager) Tel: 010-59254205 Fax: 010-59254198 Mobile: 13439684787 E-mail: [email protected] Web: http://www.cecgw.com/
6. 北京市环智环保设备有限公司 Beijing Huanzhi clean-tech equipment Co,.LTD
Beijing Huaizhou clean-tech is an integrated enterprises who do research, product design manufacturing, sales, engineering design, project contracting installation, technical advice, technical training about water treatment plant. Contact: Mr Chen
Tel：010-82921102/ 13311210629 Web: http://www.huanzhi.com/index.aspx
7. 北京万邦达环保技术股份有限公司 Beijing Water Business Doctor Co.,LTD
A listed company who provide professional, multi-disciplinary, comprehensive environmental construction services for domestic petrochemical, coal chemical industry, power industry. Includes technology development, feasibilities study, design, procurement, site supervision, construction, commissioning operation, project management, etc. Contact: LONG Jia
Tel：010-58800236/ 010-58800036
FAX：010-58800018 E-mail: [email protected] Web: http://www.waterbd.cn/
8. 东方生态 Beijng Orient irrigation Eco-tech Co., LTD
Listed, new high-tech enterprise in integrating R&D, design, production, distribution, project, and service. It is a professional company engaged in agriculture irrigation, turf irrigation, industrial dust suppression, and sport field irrigation, landscape and water treatment. It owns import and export license, and was awarded the ISO9001:2000 international quality system certification, ISO14001 Environment Management System Certification and ISO18001 Occupational health and safety management system certification.
Contact: MA Qian (project manager) Tel: +86-21-62088613 Fax: +86-21-67677610
The Water Treatment Industry in China 7
E-mail: [email protected] Web:www.irrichina.com
9. 四川环能德美科技股份有限公司 Sichuan Demo-Scimee Sci.& Tech. Co. Ltd
Company focused on the magnetic separation water purification technology research and application, is one of the few companies who is advanced in core magnetic separation water purification technology. They have magnetic separation water purification technology as the basis, combined with biological treatment technology, biotechnology - wastewater treatment ecological water restoration technology, membrane technology and other applicable technologies to provide customers with sewage treatment equipment, overall plant operation and management services. Company has more than 300 employees, registered capital of 54 million yuan.
Contact: ZhANG Ke (vice general manager) Tel: +86-10-68888491 Mobile: +86 15828219920 E-mail: [email protected] Web:www.scimee.com
10. 天津创业环保股份有限公司 Capital environmental protection
Listed state owned company whose main business focused on wastewater treatment. They are responsible for the waste water treatment and management with 4 wastewater treatment factories in Tianjin city. They are also responsible for other cities water treatment projects (for example Guiyang, Yunnan, Jiangsu, Hubei, Anhui, etc.).
Tel：022-23930000
Fax：022-23930100 Web: http://www.tjcep.com/default.aspx
11. 爱科腾博（大连）科技有限公司 EcoTurbo(Dalian) Science & Technology Co., Ltd
A new but active company located in Dalian, specialized in research, import & export high tech products in environment protection industry. Main products are in water treatment industry.
Contact: Anna (vice-general manager) Tel: +86-411-3986-5716/17 Fax: +86-411-3986-5716/17 EX 665 Mobile: +86-139-4280-6455 E-mail: [email protected] Web: www.ecoturbo.cn
State Organizations Linked to the Water Treatment Industry:
Ministry of environment protection of P.R.C http://www.zhb.gov.cn/ Ministry of Science and Technology of the P.R.C http://www.most.gov.cn/eng/ China Industrial Energy Conservation and cleaner Protection Association www.china environment.org
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Trade Shows in Clean-Tech and Water Treatment To know the market, to know the products, to meet potential business partners, participating and visiting tradeshows, attending international conferences is recommended. Important trade fairs in clean-tech and water industry are listed as below:
IE EXPO Asian`s Leading Trade Fair for Environmental Technology Solution: Water, Waste, Air and Soil (presented by IFAT China|EPTEE|CWS) Time: May 6-8, 2015 Location: Shanghai New international Expo Centre Web: http://www.ie-expo.com/
The 14th China International Environmental protection Exhibition & Conference Date: June 09-12, 2015 Location: China international Exhibition Center, Beijing Web: www.chinaenvironment.org
Aquatech China 2015 Top quality international exhibition for process, drinking and waste water Date: 06-12 June, 2015 Location: National Exhibition and Convention Center (Shanghai) Web: http://www.aquatechtrade.com/china/Pages/default.aspx
WaterEx 2015 supported by AQUATECH CHINA, focus on North China Market Date: 14-16 October, 2015 Location: National convention Center Web: http://www.waterex.com.cn/en/index.html
Water Expo China 2015 Date: 18-20 November 2015 Location: New China International Exhibition Center, Beijing
WaterChina (Guangzhou) 2015 Date: 24-26 march, 2015
Location：PWTC Expo center Web: http://www.waterchina-gz.com.cn/
The Water Treatment Industry in China 9
European Organizations to support your business in China
EU SME Centre
Add: Room910, Sunflower Tower, and No.37 Maizidian West Street. T: +86 10 85275300 E: [email protected] Web: www.eusmecentre.org.cn
China IPR Help desk
Room 900, Sunflower Tower, No.37 Maizidian West Street. Chaoyang district Beijing 100125, P.R.China T: +86 10 8527 6922 Fax: +86 10 8527 6923 E: [email protected] Web: www.china-iprdesk.eu
In Closing China is a fast growing market, and with the fast development, environmental issues are raising all around the country. Government`s rules and regulations are developing as well to have a long term sustainable development. In recent years, China are investing and expected to investment a huge amount of money in environment protection industry. And water treatment industry is one of the main focus for the upcoming years. So for foreigner companies with rich experiences and unique developed technology and equipment, China is a very good market to develop and expand the business.
To develop and expand your business in China in the water treatment industry, following obstacles need to be kept in mind:
1. From the state level, regulations and foreign policy encourages foreign companies to cooperate with local companies.
2. Companies need to adjust themselves to regulation differences and business culture differences, industrial standards differences, foreign companies need to adjust their technology for specific region and specific environment issues. From this prospective, cooperating with local company is the best and fastest way to do business in China.
3. The legal system is not that well developed for foreign companies to protect their rights and technology, so make sure your IP, technology is well protected before you do business in China. EUSME Center and China IPR SME HELP DESK can help you regarding the question “how to protect your business in China?”
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References
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5. http://bg.qianzhan.com/report/detail/300/140319-d82105c0.html
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7. http://www.chinairn.com/report/20131231/140422716.html
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