China plans to increase its sea water desalination capacity more than fivefold during the next three to five years to ease a water shortage on its inhabited islands. Around 100 sea water desalination projects will be built or upgraded in 16 coastal provinces and cities, adding 600,000 metric tons of daily desalination capacity to the existing capacity of 135,700 tons, according to a plan issued by the National Development and Reform Commission and the State Oceanic Administration…Full Article: China Daily Dec 2017

Key Point

  • The National Development and Reform Commission (NDRC) and the State Oceanic Administration’s plan to increase China’s desalination capacity boosted the Shenzhen-listed stocks of Beijing Originwater Technology (SHE:300070) and Zhejiang Hailiang (SHE:002203)

ChinaAg Comments

  • As of July 2017, China had 131 seawater desalination plants in operation.
  • In November 2016, the Xianda (Tianjin) Seawater Resources Development Company announced it would construct a desalination facility. The desalination project is part of the Nangang Industrial Zone (launched in 2014) in Tianjin. The industrial zone itself is part of the Beijing-Tianjin-Hebei collaborative development strategy. In addition to water, the desalination plant with also produce salts and chemicals.
  • By the end of 2015, China’s 121 desalination plants were reportedly producing 1 million MTs of water per day.  According to the State Oceanic Administration (SOA), China utilized 67.14% of its desalinated water for industrial use, while the remainder (32.86%) was used for residential purposes.
  • Founded in 2009 and headquartered in Kunming, Yunnan Province, Yunnan Water Investment (HKG:6839) is a water treatment company. In 2015, Yunnan Water Investment (HKG:6839) and Beijing Originwater Technology (SHE:300070) entered into a public private partnership (PPP). As of October 2016, the company’s largest shareholders were Yunnan Province Water (30.03%) and Beijing Originwater Technology (SHE:300070) (24.02%). Yunnan Province Water is a subsidiary of Yunnan Metropolitan Construction Investment (YMCI).
  • Founded in 2001 and headquartered in Beijing, Beijing Originwater Technology (SHE:300070) is a sewage treatment and water purification company. In 2015, the China Development Bank (CDB) became a major shareholder after it invested CNY 6.2 billion (~USD 955 million) in the company.
  • Founded in 1989 and headquartered in Hangzhou, Zhejiang Province, Zhejiang Hailiang (SHE:002203) is a manufacturer of metal (primarily copper) piping.

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