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Zheneng Group becomes controlling shareholder of Jinjiang
Posted on Tuesday, 11 June 2019 08:20
Zhejiang Provincial Energy Group is throwing its weight behind China Jinjiang Environment Holding by acquiring a 29.8 per cent stake in the Singapore-listed, Chinese waste-to-energy (WTE) operator for CNY 1.63 billion (USD 235.3 million).

The state-owned enterprise (SEO), known as Zheneng Group, is involved in power source construction, electricity and thermal power generation, and the development, trading and transportation of petroleum, among other things.

It manages more than 200 companies and supervises supplies that account for about 50.0 per cent of the electric power, nearly half of the total coal, and 83.0 per cent of overall natural gas consumption in Zhejiang Province.

As a large energy SEO in China, with a total net asset value of CNY 106.00 billion at the end of 2018, Zheneng Group has “great financial strength” to “facilitate the financing and future development” of Jinjiang.

It will carry out the investment via two subsidiaries, one of which is Zheneng Capital Holdings, a financial and investment platform with total net assets of CNY 19.03 billion at the end of March.

The other unit is Zhejiang Energy International, which deals in trade and foreign economic cooperation matters, has a registered capital of HKD 3.10 billion (USD 395.24 million) and, at the end of 2018, had a total net asset value of HKD 3.46 billion.

Jinjiang is involved in the planning, development, construction, operation and management of WTE facilities in China and has also established a presence in India, Brazil, Singapore, Indonesia and Germany.

The company is the first private operator in this field in the country and is a leader in terms of waste treatment capacity in operation.

It has 20 WTE facilities and five resource recycling projects in 12 provinces, autonomous regions and centrally-administered municipalities as at 31st March 2019.

Furthermore, Jinjiang has six more plants under construction, and 17 plants in the preparatory stage within the country and overseas.

The estimated total installed waste treatment capacity of all the facilities, when fully completed and acquired (including expansion and upgrading), will be 67,106 tons per day.

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