State-owned assets, foreign capital and private giants have poured in across the border, and they have taken fierce actions and captured land, which has led to local market integration and frequent large-scale mergers and acquisitions...
This is not the real estate industry in the past, nor is it the previous PPP. Hazardous waste treatment is still continuing the hot market.
It is worth mentioning that real estate tycoon Country Garden 5 has been an apprentice in the hazardous waste market for three years. Since the second half of 2017, Country Garden has begun to build its own hazardous waste treatment industry chain.
In 2017 alone, Country Garden Environmental Protection successively acquired equity in 14 environmental protection companies; since this year, it has successively controlled 5 environmental protection companies. At present, Country Garden Environmental Protection's hazardous waste treatment capacity is as high as 1.55 million tons per year, making it one after another, making it one of the top three in the hazardous waste treatment segment.
, and Country Garden also claimed that it will invest 20 billion yuan in the field of environmental protection in the next three years.
Why?
Hazardous Waste Market: From 0 to 1
Why does hazardous waste treatment have such a great ability to attract money? Is it more profitable than the real estate industry in the past?
According to the definition of the new version of the " National Hazardous Waste List " issued in 2016, hazardous waste is a waste with one or several hazardous characteristics such as corrosive, toxic, flammable, reactive, and infectious. Although the amount of hazardous waste is generated only about 3% of solid waste, it is extremely harmful to the atmosphere, water sources, soil, personal health, etc.
According to statistics, 40% of suspected environmental pollution crimes in recent years are related to hazardous waste environmental violations.
hazardous waste treatment sounds like a "risk" but the profit is tempting enough. At present, the profit rate of the environmental protection industry is generally around 10%, while the profit of hazardous waste treatment can reach about 50%. The profit of
html is about 050%, and in the environmental protection circle, it is already a profit cow.Moreover, this is a market that is constantly being released: the country is accelerating the introduction of policies for hazardous waste treatment industry, improving the identification and identification of hazardous waste, and promoting the development and growth of hazardous waste treatment industry.
In other words, the pollutants that were not recognized as hazardous waste by us are being re-identified as pollutants. So, since they are recognized, it means that such pollutants must be properly disposed of. Relevant enterprises and governments must pay for the treatment of such pollutants, and then this market will be created from scratch.
Hazardous Waste Composition
Ecological Capital Theory (ID: Shengtaizibenlun) Inquiry, it was learned that , the new version of the National Hazardous Waste List in 2016, added 117 new types of hazardous waste, increasing the types of hazardous waste to 46 categories and 479 types.
In the early 1980s, the US government passed several bills such as the Resource Protection and Recycling Act, opening the market floodgates for the US's hazardous waste treatment, thus bringing about a golden decade of explosive growth.
Half of it is sea water, half of it is flame
Will the promulgation of China's National Hazardous Waste List bring China's hazardous waste treatment into an outbreak period? Obviously, the giants have already given us enough signals.
After entering 2018, the Ministry of Ecology and Environment's "Waste Cleanup Action 2018" vigorously opened its stance; in the Yangtze River Delta region, the Ministry of Industry and Information Technology also launched a large-scale investigation of industrial solid waste... These policies have stimulated the rapid expansion of the hazardous waste market.
According to the data from the National Bureau of Statistics , China's hazardous waste production in 2016 was 53.47 million tons. Compared with the 34.31 million tons of hazardous waste production in 2011, the annual compound growth rate was only 9.28%. The reality of is that the actual production of hazardous waste is far greater than the statistical . According to professional institutions, according to the proportion of hazardous waste production to industrial solid waste production, in the past two years, my country's hazardous waste production should be between 80 million tons and 100 million tons.
In sharp contrast to this, China's hazardous waste treatment capacity has a huge gap.
Take 2015 as an example. The unit holding a hazardous waste operating license nationwide has a processing capacity of 52.63 million tons, but the actual operating scale is only 15.36 million tons. Based on comprehensive calculations:
China's effective hazardous waste treatment capacity is only about 15%. Moreover, in the declaration of hazardous waste, hazardous waste exceeding 60% has not been properly disposed of.
The gap in hazardous waste treatment in the eastern coastal areas is even larger. Taking Hunan, which ranks second in the country's hazardous waste production as an example, its hazardous waste production is about 2.8 million tons, while its actual operating scale is only about 550,000 tons. Hazardous waste treatment companies are completely unable to fill the demand gap.
Such a large market gap seems hard to imagine in China with overcapacity. What causes this situation is that hazardous waste treatment has relatively high qualifications, technical and financial barriers.
The so-called "those that can be solved with money are not a problem." hazardous waste treatment is a matter that cannot be solved with money in the short term, especially the technology and qualification barriers . Because it involves hazardous waste treatment, science and safety are always the first priority. Enterprises engaged in hazardous waste treatment must accumulate a professional technical team.
, especially qualification barriers. According to regulations, units engaged in the hazardous waste collection, storage and processing business activities should obtain a hazardous waste operation license, but the hazardous waste operation license must wait at least three years from approval to obtaining qualifications to put into production and operation. In this way, the hazardous waste treatment qualification becomes the industry pass.
Under highly prudent regulatory policies, enterprises with processing qualifications become rare goods. The phenomenon of competing for high-quality hazardous waste treatment enterprise targets inevitably appears in the capital market.
The industry is scattered, and the leader is beginning to show up
Since the hazardous waste market is so attractive to capital leaders, let’s take a look at the top three in the hazardous waste market.
So far, Dongjiang Environmental Protection is still a leading enterprise in the hazardous waste market, with nearly 50 subsidiaries covering more than 20 cities and more than 20 industries in the Pan- Pearl River Delta, the Yangtze River Delta and the central and western regions. As one of the earliest enterprises to enter the hazardous waste treatment industry, Dongjiang Environmental Protection has the qualifications to operate hazardous waste in total of 44 categories of 46 categories.
In 2017, the approval qualification for Dongjiang Environmental Protection Industrial Hazardous Waste Treatment was 1.6 million tons/year, and the qualification for harmless treatment was 734,400 tons/year, ranking first in the industry. Although the recent shareholder bribery storm has just subsided and the equity dispute between the SASAC and the Jiangsu-Guangdong-Guangdong State-owned Assets Supervision and Administration Commission is still undecided, as the leader in hazardous waste treatment, Dongjiang Environmental Protection is undoubtedly.
In addition to Dongjiang Environmental Protection, Heima Yajule has bought it through big money, but in terms of processing capabilities, it can already be ranked second in the industry. new face Country Garden can gain a foothold in the hazardous waste treatment industry, remains to be seen.
French Veolia Group is a world-renowned environmental protection enterprise with more than 40 years of experience in the field of hazardous waste. In 2015, Veolia's business in China gradually tilted towards hazardous waste treatment, and in 2016, the hazardous waste treatment capacity reached 720,000 tons per year. With such a steady forward, Veolia is undoubtedly the third place and is a daunting follower.
As a state-owned enterprise, China Everbright Green Environmental Protection, its hazardous waste treatment capacity reached 600,000 tons per year in 2016. In April 2017, Everbright Green Environmental Protection was split and listed from its parent company China Everbright International, officially competing for the hazardous waste market. In 2018, Everbright Green Environmental Protection won three hazardous waste disposal projects in a row, with a total investment of more than 1.3 billion yuan.
Although leading enterprises have first appeared in the prototype, hazardous waste treatment has not escaped from the appearance of "scattered, small, and weak".
In fact, 99% of the enterprises in the field of hazardous waste treatment are private enterprises, and the average treatment scale of more than 2,000 hazardous waste treatment enterprises is only 20,000 tons. Most of them are small enterprises with annual processing capacity of less than 10,000 tons. They are among the top 10 hazardous waste treatment industries, accounting for only 6.8% of the market share.
Such a low market concentration objectively requires a vigorous merger and acquisition integration. If the golden decade of hazardous waste starts here, then you can imagine who can make real money in the great era and hold on to the great ears?
Author: An Ye, contributor of Ecological Capital Theory
(This article is updated simultaneously on Ecological Capital Theory and China Ecological Capital Network. Please indicate the source of reprinting on the website: China Ecological Capital Network; please indicate the source of reprinting on WeChat official account: Ecological Capital Theory.)
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