Industrial

Opportunity of the Week: GCL-Poly Energy to build a 1200T/D waste incineration plant with USD 45m in Henan

GCL-Poly Energy Holdings Limited, the subsidiary of Golden Concord Holdings Limited (GCL Group), will build a new waste-to-energy (WTE) plant in Yongcheng city in Henan province. An estimated total project investment (TPI) of USD 45m (CNY 300m) will be required to build the 1200 tons per day (T/D) WTE plant, according to Dai, the project contact person.

Dai explained that the core employed equipment consists of three 400T/D mechanical grates, 12MW and 18MW condensing steam turbine generators as well as 12MW and 18MW electricity generators. Heat recovery steam generators (HRSG), automated control devices, and crushers will also be needed. Apart from above equipment, the WTE station will also entail environmental protection measures, including fly ash stabilization processing, flue gas treatment, and leachate treatment. He said equipment procurement will be after the environmental impact assessment (EIA), maybe later this year.

Dai said that project financing is from bank loans and company assets. Credit is being granted by five major banks in China, including Bank of China Limited, Agricultural Bank of China (ABC) (中国农业银行), China Construction Bank Corporation (中国建设银行股份有限公司), Industrial and Commercial Bank of China Limited (ICBC) (中国工商银行), and Bank of Communications Ltd (BOCOM Securities). However, he did not provide the loan amount each bank would provide.

Jiangsu Academy of Environmental Industry and Technology Corporation Ltd is undertaking the EIA. Now they are working on the first draft of the EIA report after receiving some public suggestions.

 

 

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AVR Vidyuth looking for foreign investors for developing 225MW gas-based power plant

AVR Vidyuth Private Limited is planning to start discussions with foreign investors to raise funds for developing a 225MW gas-based power plant at Adavipolam in Yanam district of Puducherry, said Vishnu Vardhan Rao, MD, AVR Vidyut. The company is also looking for a foreign EPC contractor to invest in the project, he added.

Rao said that the proposed project has been approved by the government of Puducherry. Land required for the project has also been procured. Once a foreign investor and an EPC contractor is finalized, AVR Vidyuth will approach the government of Puducherry for allocation of gas required for the project, he added.

The total cost of developing 1MW of gas-based power will be about USD 750,000 (Rs. 5 crore), said Ashok Kumar, Administrator, AVR Vidyuth. Based on this metric, the total project investment (TPI) of the 225MW power unit will be around USD 168.7m (Rs. 1125.8 crore).

Project equipment would typically include air compressors, gas turbines, steam generators, combustion chambers, condensers, fuel burners, jet pipes and propelling nozzles, fuel valves, and synchronous generators, among other equipment.

 

 

To find out more about this and other opportunities, contact us at https://www.iiicorp.com/

IIICorp Opportunity of the Week: Sonnedix gets loan approval from Green Climate Fund for 143MW solar project in Chile worth USD 265m

The South Korea-based Green Climate Fund recently approved a loan worth USD 49m to a large-scale solar PV project coming up in the Atacama desert in northern Chile implemented by US-based independent power producer (IPP) Sonnedix. Sonnedix, founded in 2010, has raised over USD 554m in equity to date from founders, management, private, and institutional investors. Sonnedix is a JV owned and controlled by Sonnedix Global Holdings Ltd and IIF Solar Investment Ltd (JPM IIF), an entity controlled by the Infrastructure Investment Fund.

The project will have an installed capacity of 143MW (likely AC-rated, while DC-rated capacity will be around 170MW). The project will have the capacity for expansion up to 250MW. The project is expected to require a total investment of USD 265m, with the USD 49m loan being disbursed through the Development Bank of Latin America (CAF). The project will start selling electricity at USD 4.4 per kWh from 2017 onward. This tariff is however expected to increase gradually to reach USD 8 per kWh by 2035.

The EPC and operation and maintenance (O&M) for the project is by Biosar Energy SA, which was acquired in 2012 by the Greece-based AKTOR S.A.

To connect the Atacama solar PV plant power substation, 45.5km of transmission lines and grid connection equipment at the Lagunas substation will be developed by Transelec SA under a build-own-operate-transfer (BOOT) contract and repaid under a 25-year lease with fixed payments and repurchase option of USD 1.

Recently, the Chile government approved legislation that will create a new interconnected transmission network to be established alongside a new independent operator. This will ensure that power generated from renewable energy projects located in remote regions of the country is supplied to population centers.

 

Deal origination, competitive intelligence, industry insight— With over two decades of expertise and innovcation in the global M&A, capital markets, and business news and intelligence fields, IIICorp provides unparalleled insight on opportunities in the world’s fastest-growing markets.  Visit our website for more information and access to a selection of industry reports and analytics. For subscription inquiries, please contact us here.

 

 

Exploring PE Investing in Niche Manufacturing & Industrial Services Companies with Capital Roundtable

Middle market industrial-focused private equity (PE) firms are increasingly turning to the world’s fastest growing economies to boost portfolio company returns at a time of sluggish economic growth in the US.

Growing a portfolio company’s international footprint is key to increasing returns today, according to participants in a recent Capital Roundtable conference entitled Private Equity Investing in Niche Manufacturing & Industrial Services Companies: Strategies for Enabling Profitability in a No-Growth Environment. Opportunistic international expansions into complex markets such as China, India and Brazil can distinguish a company from its competitors, in effect boosting its value to strategic buyers.

Bolt-on acquisitions of production facilities, suppliers, distributors or other assets appear to be the favored approach of PE companies keen to push portfolio firms into new markets. That’s because it’s challenging to facilitate organic growth via greenfield expansion projects in a roughly two to five year timeframe. Also, other forms of international expansion, such as joint ventures, frequently complicate both PE firms’ ability to control the day-to-day operation of portfolio company’s business and the process of exiting an investment.

Expanding via M&A does not come without challenges. Firms may find it difficult to navigate complex accounting, regulatory and compliance rules associated with new markets, according to attendees at the Capital Roundtable event. Also, they have difficulty identifying managerial talent in foreign countries, despite the emergence of new sources of talent in recent years.

Growing a portfolio company’s footprint beyond the US’ borders can be worthwhile, particularly for PE firms with the time facilitate long-term growth. But the expansion process is not without its pitfalls.

On Thursday 10 November, IIICORP and The Capital Roundtable will be hosting a conference entitled “Best Practices for PE Portfolio Companies to do Business Globally”.

 

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IIICorp Opportunity of the Week: Andhra Pradesh in talks with Chinese firms for partnership in its proposed USD 16bn hydrocarbon complex

The State Government of Andhra Pradesh(AP) is in talks with Chinese partners for a potential partnership to develop its proposed USD 16bn cracker complex in the port town of Machilipatnam.

“We had a Chinese delegation representing a potential consortium partner inspecting the land proposed for the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR),” said CHSS Prasad, Chief General Manager (Projects), Andhra Pradesh Industrial Infrastructure Corporation (APIIC). APIIC is the nodal agency implementing the project along with Vishakhaptnam Development Authority and the industries department of the AP state government. He however declined to share further details of the potential partner, citing confidentiality.

The plan is to put together a consortium of state-owned oil companies, exploration firm Oil and Natural Gas Corporation Limited (ONGC) along with private global players who have expertise in developing a facility of this magnitude. This news service had earlier reported that Dubai-based Al Kharash Contracting Co was one of those global players that had showed initial interest.

In a cracker complex of this scale, the refinery, or the mother cracker, creates raw material or feedstock for several chemical-making units, where the end-user industries involve polymers and pharmaceuticals, among others. Once completed, this will be India’s largest cracker unit with a capacity of 10 million metric tons per annum (MMTPA).

An industry source said a mother cracker complex of this size will open up opportunities to equipment suppliers from developed markets in the US and Europe. According to a previous working paper published by the Indian Council for Research on International Economic Relations (ICRIER), India currently has three naphtha-based, three gas-based, and one mixed-feed cracker units with a combined ethylene capacity of 3.3MMTPA.

The major feedstock used in petrochemical units is naphtha and natural gas (propane and butane), while the major intermediate products produced in the country are ethylene, propylene, butadiene, benzene, toluene and xylene, which are used in a variety of industries.

 

Each week, we share one of the thousands of opportunities, deals, and projects in our database. Our global team of journalists, engineers, analysts and researchers constantly publish new stories using innovative model of actionable intelligence, presented in a comprehensive database of past and upcoming projects, tenders, partnerships, trade finance and M&A opportunities. Subscribers gain access to a proprietary data set containing the terms, values, and contacts on deals updated in real time. 

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IIICorp Featured Opportunity of the Week – China Three Gorges, SGCC in the frame to buy stakes in Brazil’s Santo Antônio do Jari hydropower project

Odebrecht Energia, a unit of Brazilian construction major Odebrecht SAGrupo Cemig, and Construtora Andrade Gutierrez could be negotiating the sale of their respective stakes [totaling 51% at about USD 2.6bn (CNY 17bn)], in the Santo Antônio do Jari hydropower project.China Three Gorges Corporation (CTG) and State Grid Corporation of China (SGCC) are two of the candidates to pick up the stakes.

The Santo Antônio do Jari project is built on the Madeira River in Rondônia. It has an installed capacity of 3568MW, when all the turbines will be installed, which is estimated to be around November 2016.

“The Brazilian entities reach out to CTG and SGCC, and expect to sell the stakes to Chinese corporations. They are also in talks with the companies from other countries,” said Li Chang, a source from China’s Economic and Commercial Counsellor in Brazil, a part of the People’s Republic’s Ministry of Commerce.

“This deal is in process. But they decline to share more information with us,” Li added.

 

IIICorp subscribers have access to nearly 20,000 opportunities, deals and projects like the one above. Our network gives us access to the project managers, design firms and advisors who provide the proprietary information that sets us apart– enabling our subscribers to access upcoming projects, deals, opportunities and regulatory changes that ICorp reports on before any other source. For more information on IIICorp, contact us here.

Upcoming ICorp Events and Conferences

The ICorp team have been on the road recently, from Singapore, to Miami, to Rome, to Philadelphia. Our founder and CEO, Charlie Welsh, had the opportunity to speak as a panelist at the Association of Trade & Forfaiting in the Americas annual gathering (pictured below). We also recently attended the Special Libraries Association Conference and TXF Conference at the Four Seasons Rome. These have provided valuable forums  for sharing insight with our peers and colleagues. We’re proud to have the opportunity to showcase our product, the world’s first foreign industrial equipment supplier funding origination platform.

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ICorp will be attending and exhibiting at several conferences, expos and events in the coming weeks, so please be sure to visit our blog, homepage and Linkedin page for regular updates.

In the next month, find us at:

June 23-26      American Library Association Conference – Orlando, Florida

July 13-15         Business Librarians Association Conference – London, UK

July 16-19        American Association of Law Libraries Annual Conference – Chicago, Illinois

Are you attending or exhibiting at any of these? Be sure to connect with us on Linkedin or send us your details via our webform.

 

 

Exclusive to IIICorp: Japanese firm IBIDEN Co Ltd shows interest in BHEL’s emissions contract

ibidenTokyo-based IBIDEN Co Ltd is among several companies, including Chinese firms, that have submitted their expressions of interest (EOI) to state-owned Bharat Heavy Electricals Limited (BHEL) for a proposal to design and engineer the latter’s emission control systems for power plants and its integration with the boilers on a project-to-project basis. A BHEL official also told IIICORP that the EOI is applicable to all BHEL power plants across the country. According to its website, the power major has 20,000 MW installed capacity and going by IIICORP metrics, the contract could be worth upwards of USD 400m. The EOI comes in the wake of recent emission norms laid down by the Indian Ministry of Environment, Forests and Climate Change (MoEFCC).

IBIDEN Porzellanfabrik Frauenthal GmbH, a subsidiary firm majority owned by IBIDEN Co Ltd, manufactures the CERAM brand of catalyst and industrial honeycombs at its facility in Frauental, Austria. CERAM has developed into a global supplier of catalysts and industrial ceramics and currently has customers in more than 40 countries with over 400 employees. In the course of its international expansion, the company has set up subsidiaries in the United States and South Korea. The introduction of progressive environmental legislation around the world is a key driver of the CERAM´s business activities, says its website. The company’s environmental management system ensures responsible use of natural resources and systematically reduce its wastewater, solid waste streams, and atmospheric emissions.

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Featured Story of the Week: SGCC bid for Abengoa’s Brazilian assets faces delays arising from deal’s complex, politically-sensitive nature

State Grid Corporation of China’s (SGCC) planned purchase of Abengoa SA’s Brazilian power transmission operations is facing ongoing delays as a result of the high level of complexity it has encountered in the asset evaluation process. That’s according to Xiao Bin (肖斌), an official at theState Grid Brazil Holding SA (国家电网巴西控股公司), the local subsidiary of SGCC, who made reference to the highly diverse nature of the assets in question and their complicated financial position.

“The acquisition is still in talks and there is n0_1_21st_Century_Silk_Road_Map_thumb_1460933781855o certain time for how long it will take,” Xiao said. He added that a formal proposal has yet to be made.

SGCC’s confusion is shared by industry analysts who have also had difficulty estimating the value of Abengoa’s Brazilian assets, which comprises facilities that are operational and reneue-generating as well as ones that are being developed. In the latter category, Abengoa has about 6,000km of transmission lines under construction that will require the purchaser to take on billions of dollars of future investments.

The Brazilian government has indicated that it would expect a large and well-capitalized entity like SGCC to acquire all of Abengoa’s Brazilian assets as a package.

This news service previously reported, citing a SGCC source, that this transaction was a politically sensitive one and that it should not be viewed as a simple sale and purchase agreement between two companies. The state-owned Chinese company, which has invested USD 2.58bn (CNY 16.83bn) in Brazil’s power transmission sector since 2010, believes that the expertise it has developed via the construction of China’s vast ultra-high-voltage projects over the past two years gave it a competitive advantage over rival bidders.

Financially-distressed Abengoa, which filed for bankruptcy protection in November 2015, is Brazil’s largest non-state owned power transmission operator. Its Brazilian operations have total net debts of USD 825m (CNY 5.4bn), of which more than USD 218m (CNY ) are owed to local equipment suppliers in the country, according to the electricity industry association Abinee.

For similar stories and access to early-stage actionable intelligence on projects happening in the energy, water and waste, and environmental sectors in emerging markets, contact us at https://www.iiicorp.com/ContactUs/?ContactUs

Increased optimism on Chinese infrastructure investment

It is no secret that a period of volatility in China’s stock market this year gave many cause for concern. Since then, a growing debate about the health of the country’s economy has on occasion omitted encouraging signs of stability. In particular, critical clean power, environmental and water infrastructure projects have largely proceeded unhindered thanks to a central government stimulus effort that is beginning again to pick up steam.

Balu Balakrishnan, CEO and Director of Power Integrations, Inc recently offered an optimistic take on the promise of a renewed increase in China’s infrastructure spending after he was asked by an analyst about the government’s appetite for spending:

Evan Wang – Stifel, Nicolaus & Co., Inc. “I was wondering if you can give us some comparison against what your expectation earlier in the year that the Chinese Government might be resuming its infrastructure spending as part of the stimulus program and how is that looking now for 2016?”

Balu Balakrishnan – President, Chief Executive Officer & Director “It is actually looking very good. They have resumed investment in infrastructure.There are number of new high-voltage DC transition lines being installed in China. In addition to that, they are converting their public transportation, which is buses, into electric buses starting from Beijing and Shanghai where they have the most pollution, and we have actually a significant portion of that business that we have won on and we expect that to contribute to our growth this year and next year.”

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