Waste incineration industry accelerates overseas expansion; listed companies consecutively win overseas projects

Securities Daily Reporter Wu Yixuan

Entering March, China’s waste incineration industry continues to accelerate its overseas expansion, with leading listed companies successively winning benchmark projects abroad, demonstrating significant results in “going global.”

On March 5, Wanteng Environment Co., Ltd. (hereinafter “Wanteng Environment”) announced that its board of directors approved the proposal to invest in the Indonesia Wugasi waste incineration power generation project. The company plans to invest no more than $180 million to build a new 1,500-ton-per-day municipal waste incineration and power generation plant in Wugasi, Indonesia.

According to reports, on March 2, Wanteng Environment received a notice of winning from PT Danantara Investment Management, Indonesia’s sovereign investment fund. The consortium led by Wanteng Environment won the bid for the waste incineration power project in Wugasi, Jakarta satellite city. The project has a cooperation period of 32 years, including approximately 2 years of construction.

Besides Wanteng Environment, on March 3, Zhejiang Weiming Environmental Protection Co., Ltd. (hereinafter “Weiming Environmental”) also announced it had won a bid. Its consortium successfully secured the Bali waste incineration power project in Indonesia, which plans to build facilities with a daily processing capacity of about 1,500 tons of waste using grate furnaces for incineration and power generation. The cooperation period is about 2 years for construction and 30 years for operation.

An industry insider told Securities Daily: “Wanteng Environment and Weiming Environmental’s consecutive wins of national-level projects in Indonesia, with deep participation through long-term franchise models, indicate that China’s waste incineration industry has developed stable capabilities in integrated investment and operation, overseas risk management, and standardized replication, opening up more growth opportunities.”

The overseas expansion of these two companies is a typical example of China’s waste incineration industry wave going abroad. According to incomplete statistics, by 2025, more than a dozen Chinese companies will have signed agreements, planned, or started construction on overseas waste incineration projects, with total investments exceeding $2.7 billion, processing over 29,000 tons per day, covering East Asia, Central Asia, Southeast Asia, and Africa.

Why are domestic waste incineration companies eager to go abroad? Gao Chengyuan, Chairman and CEO of Zhaoyuan Consulting, told Securities Daily: “In recent years, after rapid expansion, China’s waste incineration market has gradually become saturated. Key indicators such as project wins, new capacity, and investment amounts have shown a downward trend. Some leading companies face overcapacity and declining profit margins, making overseas expansion an inevitable choice to seek new growth curves.”

Gao further explained: “Compared to the domestic market, with accelerating urbanization, regions like Southeast Asia and Africa are experiencing sharply increasing waste management pressures and insufficient local supply. Some countries even introduce tax reductions, subsidies, and other preferential policies to attract foreign investment in waste treatment. These emerging markets offer broad investment opportunities.”

For example, in Southeast Asia, according to a research report by GF Securities, the region’s waste incineration capacity demand could reach 222,000 tons per day by 2030 and 491,000 tons per day by 2050, corresponding to over 100 billion yuan in investment space. Assuming a uniform scale of 1,000 tons per day, in a optimistic scenario, project revenue in Southeast Asia could be about 1.8 to 2.7 times that of China, with profits 2 to 5 times higher, and net profit margins exceeding 25%.

Gao believes that in the future, Chinese waste incineration companies will shift from exploratory layouts to large-scale implementation, with a positive outlook. In the short term, Southeast Asia will remain the primary destination for overseas expansion; in the medium to long term, markets in Central Asia, the Middle East, and Africa are also gradually revealing their potential.

Based on this trend, several experts interviewed stated that companies should further deepen their understanding of target markets, tailoring solutions based on regional waste characteristics and policy standards. They should also strengthen technology and standard exports, promote localization of “Chinese solutions,” and improve long-term operational capabilities. Additionally, companies need to pay attention to overseas compliance and risk management, establish robust supply chains and local teams to ensure steady project operation and sustainable development.