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Environmental remediation companies burgeoning in China

Environmental remediation has become an emerging business in China but the market is still in a chaotic state, with many Chinese firms jumping on the bandwagon.

Dongjiang Environment, an industrial waste-processing firm, for instance, announced on Nov. 9 that it was teaming up with Jiangsu Suntime Environmental Remediation to set up a joint venture, with capital of 10 million yuan (US$1.64 million), to form environmental remediation businesses, including risk evaluation for polluted grounds, as well as design, consultancy, and the removal of pollution from polluted grounds and surface water.

Dongjiang Environment pointed out that the joint venture will undertake remedial engineering projects to remove pollution from polluted soil and surface water, taking advantage of its environment protection-related business network and the soil-remediation techniques and expertise of Jiangsu Suntime, according to Shanghai's First Financial Daily.

BCEG Environmental Remediation Co, a pioneer in this field, has announced plans to list its shares on the Growth Enterprise Market and China Energy Conservation and Environmental Protection Group and some other central-level state enterprises have set up subsidiaries which will foray into the field.

Industry insiders note that the industry is burgeoning but the market is in a disorderly state, as numerous players in the field lack the adequate expertise to undertake these kinds of projects in earnest. "The number of companies in the field has soared to 300, when it stood at just 30 three years ago, including many which seem to be just in it for the ride," an insider told the paper. Many soil remediation firms only engage in soil digging, burying, and incineration, without actual soil remediation, said Liu Yangsheng, secretary general of the committee for the prevention of heavy-metal pollution and soil remediation of the China Environmental Protection Industry Association.

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