SembEnviro Tay Paper Signs JV Deal with Chinese Paper Recycler

SembEnviro Tay Paper Pte Ltd, a subsidiary of SembCorp Environmental Management Pte Ltd., signed a Joint Venture Agreement with XiangHong Waste Paper Recycling Pte Ltd to acquire a 60 per cent stake in XiangHong, Shanghai’s leading waste paper collection and recycling company for around $550,000.

According to SembEnviro, XiangHong is  one of the five major paper recycling companies in Shanghai; it, holds a license for recycling and trading of recovered fiber and other recyclables in Shanghai. The company has been in operation for more than 40 years and has a core business in collection and processing of recovered fiber, with a current handling capacity of some 100 metric tons per day at its plant with baling and storage facilities.  This volume is expected to grow exponentially over the next three years.

SembEnviro Tay Paper is involved in the paper recycling and trading business in Singapore. The company is 60 percent-owned subsidiary of SembEnviro. The company owns and operates a waste paper recycling facility in Tuas. With capabilities in collection, automated sorting and baling and bulk trading of various types of recyclable paper. The company handles more than 350 metric tons of recovered fiber a day in Singapore.

Jimmy Tay, managing director of SembEnviro Tay Paper, “This is a major milestone for us as well as Singapore’s waste paper industry. We will be the first to leverage on Shanghai as a twinning strategy to our Singapore waste paper operations.  Together with SembEnviro, we are able to go on to the next level of development and accelerate our growth as part of our regional expansion, through this JV.  Between XiangHong and us, we have nearly 60 years of experience.  Combining their vast local collection network and international sales channels, our technical expertise and know-how, management, technology and IT, I am sure our we can offer our clients more integrated and cost-effective waste paper management solutions.”