China Jinjiang Environment said on Wednesday that its wholly owned subsidiary, Hangzhou Yuhang Jinjiang Environment Energy, signed a compensation agreement with the local government over the closure of its Hangzhou Yuhang waste-to-energy facility.
Under the agreement, Hangzhou Yuhang will receive total compensation of 289.84 million yuan, or around S$57.51 million, which includes land compensation, housing compensation and the fair value of equipment, it said in a filing to SGX after the market close on Wednesday.
As of the end of August, the company had already received around 145 million yuan in compensation, with the balance expected by end-October, China Jinjiang Environment said.
“Given that the Hangzhou Yuhang WTE Facility is located where the future Hangzhou West Corridor is to be situated and west of Hangzhou’s future transport hub, such location may no longer be suitable for the operation and development of a waste incineration plant,” China Jinjiang Environment said in the statement.
“Accordingly, the group had voluntarily ceased operations at the Hangzhou Yuhang WTE Facility from August 2017 onwards in view of ongoing negotiations with the local government,” it added.
Hangzhou Yuhang, which started operations in 1998, had a daily waste treatment capacity of 700 tons and was the first circulating fluidized bed incineration power plant on the mainland, it said.
The company had announced the negotiations with the local government with its earnings in mid-August, it noted.
Among the other company-owned-and-operated WTE facilities with closure or cessation of operation plans, the Zibo Jinjiang WTE facility ceased incineration in early July, with the company still in negotiations with the local government on compensation, China Jinjiang said.
The Kunming Jinjiang WTE facility is currently operating as normal, with the timeline for any closure dependent on the progress toward completing the Kunming Wuhua reconstruction project, it said.
In a separate filing to SGX on Wednesday, China Jinjiang said Zhang Chao, executive director and CEO of the company, was appointed the legal representative of indirect wholly owned subsidiary Hangzhou Jinhuan Investment, replacing Wang Yuanluo, who is the non-executive, non-independent chairman of the company.
Zhang Chao also was appointed the legal representative of indirect wholly owned subsidiary Lin’an Jiasheng Environment, replacing Wang Yuanluo, it said.
Ye Longxiang was appointed the legal representative of indirect wholly owned subsidiary Hangzhou Kesheng Energy Technology, replacing Wang Wuzhong, it said.