Wastewater Treatment Industry In China

An Expert's View about Business Support Services in China

Posted on: 16 Mar 2010

China: Wastewater Treatment Industry Key Tier 2 City Markets 2010 Update

Wastewater Treatment Industry in China Overview of Key Tier 2 City Markets 2010 Update China: water etWas nt me Treat ust nd I r y 1 erview Ov of ey K Tier 2 ty Ci rkets Ma 2010 epdat U CONTENTS i Introducton 2 Executive Summ ary 2 Industry Overview 4 - ewa ter Wast Generation in China 4 - ewa ter Wast Treatment in China 6 Competitive ape Landsc 8 y Regul ator Environ ment 1 1 Key s Trend and Opportunities 1 3 Key Tier 2 City Marke ts 1 5 - Tianj in 1 6 - Dal ian 1 8 - Hangzhou 2 1 - Wuxi 2 4 - She nzhen 2 7 - Xiam en 30 - Chongqing 3 3 - Wuhan 3 5 Market Entry 3 8 Appendix 40 T h e J L J G r u op ? uSoltin os for Chin a Ent r y & G or wth China: water etWas nt me Treat ust nd I r y 2 erview Ov of ey K Tier 2 ty Ci rkets Ma 2010 epdat U INTRODUCTION The obje ctive of this report is to provide an overview of the Chine se ket mar fo r wastew ater 1t reatment , wi th focu s on e som ke y ing emerg Tie r 2 city mark ets beyond eaalr dy blesta ished Tie r 1 cities such as Shangh ai , Beiji ng , and 2Guan gzhou . EXECUTIVE SUMMARY Market overview. na Chi contin ue s to face ere sev wate r lution pol and wate r aiscrc t y proble ms. C hin a gen erated 5 7 . 2 billion tons of wastew ater in 200 8 ; nicip mual wastew ate r and indu strial wastew ater account for 5 8 % and 4 2 % peres ctivel y. It is expe cted that total wastew ater will contin ue owin gr g due to pid ra urban n izatio and ial induization str , reaching 79 billion tons by 2015 . The encurr t wastew ater tre atme nt infst ructure ra is still inadeq uat e (although many WWTP?s 3 opete ra under - capa city) an d there will be contin ue d construction of new faciliti es and upa gr ding of exi stin g one s, ures lting in a large demand fo r inve stment . However, compe tition for pro jects is fierce, from foreign compan ies that can pro vide anced adv tec hn ology and manageme nt , as we ll as f rom domestic player s , whic h can typicall y offe r e mor c ompe titive price s and in some case s compable ar tec hn ology . Regulatory environment. hin C a has recen tly stepp ed up its effort s to impro ve the regulato ry fra mew ork for nmoder wast ew ater manageme nt , lly especia in the t las deca de . A ngera of regulatory and econ omic instrumen ts are used (e.g. user charg es for wate r viserces ); h owe ver, local enforcemen t remains weak in many regions (e.g. low collectio n tes ra on wate r ffs) tari . The ht11 Five - Ye ar Pl an (2 00 6 - 2010 ) mphizes eas th e concep ts of constructing a wate r - savin g iety soc and treating wate r pollu tion and this trend is expe cted to contin ue hnt o i the t12 Five - Ye ar Pl an (20 11 - 20 15) . China s ha o als stipula ted relevant policies to en courage pri va te and foreig n inve stment in wastew ater treat men t facilitie s. Wastewater treatment industry in the Financial Crisis. In pon res se to the worl d econ omic ,i crsis th e Chine se cen tral governmen t ann oun ced na RMB 4 trilli on ulu stim s pa ckage (fu nds inje cte d f rom 20 08 to 2010 ) to encourage infst ructure ra develop men t. Nearly 50% of the funds e ar earmke ar d for inf rastru cture and related projec ts; RMB ~370 billion is ea rmarked fo r rul ra inf rastru cture inclu di ng wat er supp ly and RMB ~350 billion is earmarke d fo r environ men tal protect ion project s, incl udin g mun ici pal wate r and wastew at e r treatmen t proje cts. 1 he T o cess p r o f ng ovi rem ntsn an tami o c o m fr , er astewat w i ch hw olves in v , ical p h ys l,oogi b l ca i nda lemica ch n t e treatm s 2 In this report we use the term ?Tier 2? or ?secondary? cit y ot ferre o t ities c s deb esi , nijg i Be ai,gh h an S uhno gz u a G nda ngHo Kong. heT ,term , erwev o h lduh o s otn be n g ilead mis as most of e th Tier 2 ies cit d lyze n a a in hist port re are of y ver i cant i f gn si ni ze si d na u te rib to n c greatly o t het l alo ver Chin a my o o n ec 3 W er astewat ent treatm nt; l a p lease p r fere to oy ssar gl T h e J L J G r u op ? uSoltin os f ro Chin a Ent r y & G or wt h China: water etWas nt me Treat ust nd I r y 3 erview Ov of ey K Tier 2 ty Ci rkets Ma 2010 epdat U Key emerging Tier 2 city markets and best prospects. t Bes pe p cts ros cl osely wol l o f governmen t ect dir ions and the areas of plan ne d inve stment in wastew a ter tre atmen t facilitie s. In eneral, g equipmen t with vanced ad tech nology that domestic compan ies e ar not able to prov i de is most nee ded . In the eigh t emergin g markets analyze d in this repo rt ? Tian jin, Dalia n , Hangzhou, Wuxi , heSh en n, z Xiamen , Chongq ing , and Wuhan - a key trend is a ong str foc us on develop ing biological treatmen t proces s with nitrogen dan phosphorus removal tech nologies , creating pote nt ial opp ortun ities for foreig n compan ies. All the cities e ar o als mo v ing towards eate r gr use of separation , membne ra and inf ecti dis on tech nology and equipnt , me and the needs for slu dge treatm en t ntequip me and wate r recl amati o n tech nologies e ar ex pe cted to increase. Althou gh differen t tech nologies have been app lied in differen t W, WTPs good prospects are for sequ encing batch reactor (SBR) activated slu dge proces s and biologic al aeration filte r (BAF) pro cess . Phya sicl - che mical and biologic al proces ses are widely used to treat ini dustral wa stew ater in all citi es, inclu d ing sedimentation , filtration , anae robic and aerobic activated sludge , etc ., which o als pr o e vid pote nt ia l opp ortun ities for foreign equ ipme nt .suppliers Market access. ugh Altho there is a good pe ep rc tion of foreign equip men t, forei gn compan ies face several ier barrs . Local gove rnmen ts gen erally pref er foreign direc t inve stment (FDI) in was tew ater proj ects as it b rings tech nol ogy transfer and capita l inve stment. There is oals ong str c om pe tition from local compa nie s that compe te on price and fro m othe r foreign compan ies with ance adv d tech nology . However , the re e ar still opp ortun ities for foreign compan ies, which can access the ketmar by using local tdisributors , participating in bidding fo r equip men t procuremen t, or by est ablishin g a prese nce ( e.g . Represen tative Office , Wholly Foreign Own ed prise E nt er .) T h e J L J G r u op ? uSoltin os f ro Chin a Ent r y & G or wt h
Posted: 16 March 2010

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