INSIDE INDUSTRIAL INFRASTRUCTURE

YOUR GATEWAY TO NEW BUSINESS OPPORTUNITIES IN NEW MARKETS

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Exclusive to IIICorp: Japanese firm IBIDEN Co Ltd shows interest in BHEL’s emissions contract

Tokyo-based IBIDEN Co Ltd is among several companies, including Chinese firms, that have submitted their expressions of interest (EOI) to state-owned Bharat Heavy Electricals Limited (BHEL) for a proposal to design and engineer the latter’s emission control systems for power plants and its integration with the boilers on a project-to-project basis. A BHEL official also told IIICORP that the EOI is applicable to all BHEL power plants across the country. According to its website, the power major has 20,000 MW installed capacity and going by IIICORP metrics, the contract could be worth upwards of USD 400m. The EOI comes in the wake of recent emission norms laid down by the Indian Ministry of Environment, Forests and Climate Change (MoEFCC).

IBIDEN Porzellanfabrik Frauenthal GmbH, a subsidiary firm majority owned by IBIDEN Co Ltd, manufactures the CERAM brand of catalyst and industrial honeycombs at its facility in Frauental, Austria. CERAM has developed into a global supplier of catalysts and industrial ceramics and currently has customers in more than 40 countries with over 400 employees. In the course of its international expansion, the company has set up subsidiaries in the United States and South Korea. The introduction of progressive environmental legislation around the world is a key driver of the CERAM´s business activities, says its website. The company’s environmental management system ensures responsible use of natural resources and systematically reduce its wastewater, solid waste streams, and atmospheric emissions.

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Featured Story of the Week: SGCC bid for Abengoa’s Brazilian assets faces delays arising from deal’s complex, politically-sensitive nature

State Grid Corporation of China’s (SGCC) planned purchase of Abengoa SA’s Brazilian power transmission operations is facing ongoing delays as a result of the high level of complexity it has encountered in the asset evaluation process. That’s according to Xiao Bin (肖斌), an official at theState Grid Brazil Holding SA (国家电网巴西控股公司), the local subsidiary of SGCC, who made reference to the highly diverse nature of the assets in question and their complicated financial position.

“The acquisition is still in talks and there is no certain time for how long it will take,” Xiao said. He added that a formal proposal has yet to be made.

SGCC’s confusion is shared by industry analysts who have also had difficulty estimating the value of Abengoa’s Brazilian assets, which comprises facilities that are operational and reneue-generating as well as ones that are being developed. In the latter category, Abengoa has about 6,000km of transmission lines under construction that will require the purchaser to take on billions of dollars of future investments.

The Brazilian government has indicated that it would expect a large and well-capitalized entity like SGCC to acquire all of Abengoa’s Brazilian assets as a package.

This news service previously reported, citing a SGCC source, that this transaction was a politically sensitive one and that it should not be viewed as a simple sale and purchase agreement between two companies. The state-owned Chinese company, which has invested USD 2.58bn (CNY 16.83bn) in Brazil’s power transmission sector since 2010, believes that the expertise it has developed via the construction of China’s vast ultra-high-voltage projects over the past two years gave it a competitive advantage over rival bidders.

Financially-distressed Abengoa, which filed for bankruptcy protection in November 2015, is Brazil’s largest non-state owned power transmission operator. Its Brazilian operations have total net debts of USD 825m (CNY 5.4bn), of which more than USD 218m (CNY ) are owed to local equipment suppliers in the country, according to the electricity industry association Abinee.

For similar stories and access to early-stage actionable intelligence on projects happening in the energy, water and waste, and environmental sectors in emerging markets, contact us at https://www.iiicorp.com/ContactUs/?ContactUs

#china

#power distribution

#brazil

#assets

#finance

#trade finance

#global trade

#economy

#industrial

#manufacturers

#Clean Energy

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Increasing optimism for Chinese infrastructure investment

It is no secret that a period of volatility in China’s stock market this year gave many cause for concern. Since then, a growing debate about the health of the country’s economy has on occasion omitted encouraging signs of stability. In particular, critical clean power, environmental and water infrastructure projects have largely proceeded unhindered thanks to a central government stimulus effort that is beginning again to pick up steam.  

Balu Balakrishnan, CEO and Director of Power Integrations, Inc recently offered an optimistic take on the promise of a renewed increase in China’s infrastructure spending after he was asked by an analyst about the government’s appetite for spending: 

Evan Wang - Stifel, Nicolaus & Co., Inc. “I was wondering if you can give us some comparison against what your expectation earlier in the year that the Chinese Government might be resuming its infrastructure spending as part of the stimulus program and how is that looking now for 2016?”

Balu Balakrishnan - President, Chief Executive Officer & Director “It is actually looking very good. They have resumed investment in infrastructure. There are number of new high-voltage DC transition lines being installed in China. In addition to that, they are converting their public transportation, which is buses, into electric buses starting from Beijing and Shanghai where they have the most pollution, and we have actually a significant portion of that business that we have won on and we expect that to contribute to our growth this year and next year.”

For access to our extensive database of intelligence on Chinese project opportunities, contact us for a trial at https://www.iiicorp.com/ContactUs

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Bryant University’s International Business program, ranked among the top in the country, requires a capstone project of all graduating seniors. The Senior Practicum program teams students with businesses working on specialized international projects, ending the semester with a presentation of their work to a panel of distinguished judges. Our own founder and CEO Charlie Welsh is appearing on the panel at this afternoon’s competition in Providence, R.I. Good luck to all students taking part today!

For more about Bryant University’s IB program and Senior Practicum, visit: http://bit.ly/1Tjx4eK

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IIICorp had the opportunity to speak with Piyush Goyal, Minister of Power at last night’s Mumbai Press Club RedInk Media Awards at Nariman Point, Mumbai.

Minister Goyal has set ambitious targets, aiming to reduce carbon emissions by 30-35 percent. He provided encouraging feedback on IIICorp, particularly regarding our potential role in aiding India in meeting its emissions reduction and energy efficiency goals.

At the ceremony, the minister thanked the media for bringing awareness to the fact that over 400 remote villages in India have become uninhabitable due to lack of power. The government is currently leading aggressive efforts to reestablish power in these rural areas. Measures to ensure transparency throughout this process have been implemented, engaging over 500 qualified engineers located throughout the country. Real-time data, available to the public through a mobile app and web dashboard called GARV, will be uploaded as villages become electrified.

(For more information on GARV, visit http://garv.gov.in/dashboard)

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IIICorps Featured Opportunity of the week!

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Millions of people being relocated from cities, fewer jobs, greater centralization, and more movie blockbusters are just some of the author’s predictions for the year.

Here is some insight from McKinsey on what to expect in China for 2016.

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February Update from IIICorp: Deal flow in China. Amazing new infrastructure opportunities.

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The expertise and knowledge of our people play a critical role in creating actionable information for our subscribers. IIICorp's Founder, Charlie Welsh discusses this important topic in this video.

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February Update from IIICorp: Deal flow in India. Amazing new infrastructure opportunities.

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IIICorp Opportunity Alert: February 3rd

http://pages.iiicorp.com/Opportunity-2-1.html

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IIICorp reporters are on the ground and specifically trained to ask the right questions from their sources. Click to learn the secrets of gathering deal intelligence.

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Old King Coal retains his Chinese Crown

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ICORP Exclusive Report: Dredging and waste treatment opportunities in the development of india’s inland waterways

Bloomberg reports: “Modi Seeks to Cut Transport Costs With $6 Billion Waterways Goal.” 

View ICORP’s most recent industry whitepaper on the topic, Dredging and waste treatment opportunities in the development of India's inland waterways, here.

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ICORP featured in a number of articles, including the WSJ: For Hedge Funds, a Can’t-Miss Trade Goes Bust

http://www.wsj.com/articles/funds-hot-money-gets-burned-in-energy-trade-1445279458

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Charlie Welsh explains the theory behind ICORP’s application of the Mergermarket ‘origination intelligence’ model to the corporate markets

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All businesses are increasingly going global and Middle Market companies can’t ignore opportunities outside the USA.

Brandt Handley looks at why U.S. Middle Market companies can no longer ignore the opportunities outside of America: “North Americans currently account for about 18% of the global consumer market, but that is expected to drop to just 6% by 2050 as the world economy grows. By going global, Middle Market firms can reap huge benefits…”