Niutech Energy Ltd, a Jinan, Shandong, China-based provider and operator of recycling solutions for waste plastic and scrap-tires, has received a US$1.7m follow-on investment from AIM-listed private equity investor Origo Partners, Plc.
Previously known as Jinan Eco-Energy Ltd, the company develops, markets and operates recycling plants based on its patent protected proprietary technology, which convert used tires and waste plastics into valuable products like fuel oil, carbon black and steel.
The technology is already deployed in a commercial scale recycling plants across Asia and around the world including Europe, South East Asia, and China.
Through a local subsidiary, Niutech has entered into an agreement to establish a joint-venture with Zhejiang Youbang Energy Development Co. Ltd. (“Youbang”), a domestic investment group. With an initial capitalization equivalent to US$3.3m, it will be 55% owned by Niutech, with a 45% interest held by Youbang.
Through the joint venture, Niutech will own and operate a plastic recycling plant in Fuyang City, Zhejiang province, one of China’s largest paper recycling hubs. Based on the company’s patented recycling technologies, the initial processing capacity of the plant will be 20,000 tons of waste plastic, with an expected output of 50,000 barrels of fuel-oil per annum.
The plant is expected to start operating under Niutech’s management before the end of year.