China’s race to industrialize and urbanize in a single generation has taken a significant toll on the environment and quality of life. For instance, among the country’s 500 largest cities, less than 1% meet the World Health Organization’s air quality standard, more than 40% of China’s rivers are polluted, and nearly 20% of arable land is considered contaminated.
Under immense social and economic pressures, the Chinese government has committed to tackling these issues as part of its economic transition. Beijing has pledged to invest $360 billion
into renewable energy, which is expected to contribute to 27% of China’s total energy consumption by 2020. The government has also mandated that major cities should achieve “good” or “excellent” air quality at least 80% of the time in a given year.
The top-level commitment and broad policy support for greening the economy has led to significant interest among private investors, targeting sectors ranging from waste treatment and energy efficiency technologies to renewable energy and electric vehicles.
Anhui Guozhen focuses on waste water treatment. The company runs 95 waste water treatment facilities in 12 provinces in China. It also operates facilities in overseas markets, which contributed to over 18% of its 2016 revenue.
In 2015, through the acquisition of another Chinese company, Anhui Guozhen Environment Protection Technology effectively acquired a 45.31% stake in California-based Mc Wong Environmental and Energy Group. The US company also offers water waste treatment services.
In 2016, the company acquired Biovac Environmental Technology AS, a waste treatment equipment manufacturer in Norway for $5 million.