The US-based Covanta Energy Group Inc. has bought a 40-percent stake in Chongqing Sanfeng Environmental Industry Co Ltd, subsidiary of Chongqing Iron & Steel Ltd, marking the entry of the world's leading operator of large-scale waste-to-energy facilities to China.

"We are very excited about our new partnership with Chongqing Iron & Steel and about Sanfeng as a solid platform for growth in this dynamic market," said Anthony Orlando, President and Chief Executive Officer of Covanta.

Dong Lin, Chairman of Chongqing Iron & Steel, also expressed his confidence in cooperation with Covanta.

China generates an estimated 280 million tons of waste annually, most of which is disposed via land-filling. The Ministry of Construction has outlined a National Waste Disposal Plan to increase energy-from-waste from less than two percent of waste disposal in 2005 to 30 percent by 2030.

Covanta's purchase is expected to be completed in the second quarter of 2007. Sanfeng will become a Sino-US joint venture with a new name of Chongqing Sanfeng Covanta Environmental Industry Co., Ltd.

Covanta is a New York Stock Exchange listed company engaged in waste disposal, energy services and specialty insurance.

Chongqing Iron & Steel is a large steel enterprise in China, whose subsidiary Sanfeng owns two 1,200-ton per day energy-from-waste facilities in southwestern Chongqing Municipality and Fuzhou of east China's Fujian Province.

Source: Xinhua