
Chinese industrial waste processor raises $37m Series A
Ningbo-based industrial hazardous waste processor Nuoke Huanjing Keji has raised RMB250 million ($37.2 million) in a Series A round of funding participated by US-China Green Fund and Avic Trust.
Founded in 2017, the company processes hazardous industrial wastes and contaminated soil using cement kilns, which are one of the best tools for incinerating wastes that have complex physical forms and chemical compositions. The ash can be transformed into clinkers, a key component for manufacturing cement.
Nuoke invested, built, as well as did the maintenance for around 60 kilns across the nation as of November last year. The waste processed by these facilities reached 3 million metric tons during that period. Most of its business comes from big cement manufacturers including Zhejiang province-based Hongshi, Anhui-based Hailuo, and Beijing-based BBMG.
Green Fund said after a year’s due diligence on the industry it decided Nuoke possessed the best ability to find and manage new projects in the space, according to Lin Xu, the fund's chairman. Jiangtao Yao, chairman of Avic Trust, which has RMB648.9 billion in assets under management, added that the industry's growth potential is huge, with Nuoke expected to benefit from China's push to improve environmental protection.
Industrial waste processing in China has been expanding rapidly since 2013 when tighter regulations were issued regarding the disposal of hazardous wastes. The industry is expected to be worth RMB200 billion by 2020, according to the state-owned Xinhua News Agency. However, the market remains fragmented, with larger players like Nuoke only emerging in recent years.
The US-China Green Fund was established in 2017 by China’s Central Financial and Economic Affairs Commission and the Paulson Institute of the US. Activity to date includes an RMB100 million round for Chinese artificial intelligence company AIpark last year, a $116 million commitment to smart home developer Hosjoy, and participation in a joint venture that will invest up to RMB80 billion in underperforming Chinese steel assets.
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