The venture capital firm Origo Partners has invested an additional $1.7 million into the Chinese plastics and tire recycling firm Niutech Energy. The money will be used in connection with the start of Niutech’s plastics recycling plant in China.
Niutech, through a local subsidiary, has entered into an agreement to establish a joint-venture with Zhejiang Youbang Energy Development Co. Ltd. (”Youbang”), a domestic investment group. With an initial capitalization of $3.3 million, the joint venture will be 55 percent owned by Niutech, with a 45 percent interest held by Youbang.
Through the joint venture, Niutech will own and operate a plastic recycling plant in Fuyang City, Zhejiang province, one of China’s largest paper recycling hubs. According to a release, Fuyang City’s paper industry produces an estimated 200,000 metric tons of waste plastic per year.
Niutech says that the initial processing capacity of the plant will be 20,000 tons of scrap plastic per year, with an expected output of 50,000 barrels of fuel-oil per year. Under plans submitted to the Fuyang City Government, Niutech says that the annual processing capacity could expand to 200,000 tons per of waste plastic and 500,000 barrels of fuel-oil per year, subject to the provision of land, regulatory incentives and funding. The plant is expected to start operating under Niutech’s management by the end of 2011.
Commenting on the investment, Chris Rynning, CEO of Origo says, “We are very pleased with the progress Niutech has made since our initial investment in June this year in executing its business plan and developing its strategy. The Fuyang joint venture will provide a solid base for Niutech to expand its build-own-and operate business in China and abroad. We are also encouraged by the broadened sales pipeline and conversion of existing contracts into delivered projects.”
Source : www.recyclingtoday.com