90% City Water Pollution Serious International Clothing Brand Is Hard To Escape

Recently,

The "outline of 12th Five-Year plan" and "guide" have raised four requirements for sewage treatment industry: improving sewage treatment rate, sewage discharge standard, reuse rate of reclaimed water and harmless treatment rate of sludge.

The "four improvements" put forward higher requirements for the sewage treatment industry in the two aspects of "quantity" and "quality".

It is understood that the Ministry of Finance recently allocated a budget of 4 billion 390 million yuan in the central budget for infrastructure construction in 2011, which is specially used for 30 provinces, autonomous regions, and municipalities in Hebei, Zhejiang, Sichuan and Qinghai.

Strictly control groundwater quality deterioration

It is understood that at present, the biggest bottleneck factor in the domestic garbage disposal industry is the backward and inadequate facilities for harmless treatment.

Taking sewage treatment industry as an example, data from the national development and Reform Commission show that by the end of 2010, China's capacity to invest in urban sewage treatment has increased by 108% compared with that in 2005, but the sewage treatment rate has increased by only 47.7%.

The main reason is the lag of pipeline network construction.

For urban waste disposal, the industry believes that despite the past 5 years, the national urban garbage harmless treatment rate increased from 37% to 71.3%, but the promotion to the town level is not effective.

The main reason is that there is a big gap in the matching of garbage disposal facilities.

Groundwater is an important source of water for China's life, industry and agriculture. However, due to the aggravation of surface water pollution, the water quality of underground water is also deteriorating.

According to the data provided by the Ministry of environmental protection, 90% cities in China are polluted by organic and inorganic toxic and harmful pollutants to varying degrees.

And this situation is still deteriorating. The survey of land and resources in recent years shows that 40% of the urban groundwater quality is deteriorating.

The aggravation of groundwater pollution is related to the low treatment rate of domestic sewage.

Data show that by the end of 2009, China's sewage treatment rate was only 73%, and this year's target is 80%. Even if this year achieved the target, there is still a big gap between the 90% sewage treatment rate in developed countries.

According to industry estimates, during the "12th Five-Year" period, the capacity of sewage treatment needs to increase by 67% to meet the needs of sewage treatment.

In addition, according to the reporter's understanding, in order to increase the intensity of sewage treatment, China will also moderately raise the standard of urban sewage treatment charges and sewage charges in the next 5 years, and promote the paid use and trading of major pollutants such as ammonia nitrogen.

Good policies and water enterprises

According to statistics, there are not many Water Service Company listed on A shares, but only over 10 Water Service Company, such as Jiangnan water, Chongqing water, Hongcheng water, Wan bang, Bi Shui, Xing Rong investment, South China Sea development, pioneering environmental protection, pioneer shares, Sang Dehuan and so on. Among these companies, Chongqing and water resources are experts in sewage reuse.

Zhou Fengwu, a public utilities analyst at Orient Securities, said that during the "11th Five-Year" period, China's sewage treatment rate increased significantly, and the urban sewage treatment rate reached 77.4% in 2010.

In the 12th Five-Year plan outline, the overall goal of urban sewage treatment rate reached 85%. Therefore, in the context of the upgrading of treatment technology, the total investment of industrial and urban sewage treatment is expected to reach more than 430 billion yuan.

Despite the frequent news of the policy, people in the industry believe that the Water Service Company's share price is going to rise. Besides the release of its performance, the price of water and the rise of sewage charges are also a catalyst for the stock market.

Data show that rivers and lakes are generally polluted in China. 75% of the lakes in China are eutrophic to varying degrees, and 90% of urban waters are seriously polluted. The 60%-70% of total water shortage in southern cities is caused by water pollution.

Therefore, under the background of large sewage treatment, the listed companies will increase the rate of sewage treatment and the cost of disposal.

Sewage discharges

Speaking of the now hot sewage treatment industry, we have to mention environmental protection organization Greenpeace released a survey report in July 13th: 14 global clothing brands have not been able to effectively solve their suppliers' toxic and harmful substances and cause water pollution in China.

This is called the poison of fashion: China's water pollution survey of global clothing brands. The survey reports cover Chinese and foreign clothing brands including: Abercrombie&Fitch, Adidas, Bauer

Hockey, Calvin Klein, Converse, Cortefiel, H&M, Lacoste, Nike, PVH

Corp, Puma, Lining, Metersbonwe and YOUNGOR 14.

The two suppliers of the brand are YOUNGOR textile industrial city located in the Yangtze River Delta and Zhongshan Guotai dyeing and finishing Co., Ltd. in the Pearl River Delta.

According to the survey, two suppliers discharged toxic and harmful substances to the waters of the Yangtze River Delta and the Pearl River Delta respectively.

Alkylphenols (including nonylphenol) were found in wastewater samples from two factories. Perfluorinated compounds (PFC), especially perfluorooctanoic acid (PFOA) and perfluorooctane sulfonate (PFOS), were also found in the samples from YOUNGOR textile industrial city wastewater.

In another case, Nakayama Kunitai dyeing and finishing Co., Ltd. (hereinafter referred to as "Cathay dyeing and finishing") is located in the Gaoping industrial area of the triangle town of Zhongshan City, Guangdong province. The two tributaries of the Huang Sha Lek waterway are dyeing and finishing with the high Shahe around Guotai.

The yellow sand drainage channel is part of the Pearl River Delta and finally flows into the South China Sea.

Abercrombie&Fitch, PVH

Corp, Lining and Metersbonwe confirmed to Greenpeace that Cathay Pacific dyeing and finishing is their supplier.

The sewage treatment plant located at the northwest corner of Cathay Pacific dyeing and finishing plant discharged the treated sewage into the aforementioned waterway through the drain pipe.

At the same time, in recent years, the growth rate of sewage discharge in China has been maintained at 3%. In the future, with the continuous progress of industrialization, the acceleration of urbanization and the improvement of living standards of residents, the amount of sewage discharge will maintain a certain growth.

Insiders pointed out that sewage discharge and harmful emissions caused by industrialization need to be jointly controlled by enterprises and regulatory authorities.

At present, domestic water pricing and sewage treatment fee adopt government pricing mode.

Relaxing the regulation of sewage charges will help to mobilize the enthusiasm of water enterprises, and on the other hand, it will encourage the expansion of the capacity of enterprises and promote the improvement of the overall sewage treatment rate.

The price of sewage treatment in the future market will be the trend of the times, which will also enhance the overall profitability of the water sector.

The main risks faced by the industry are the implementation of relevant national supporting policies, the uncertainty of investment in local governments and related enterprises, and the slow process of marketization of water prices and sewage treatment fees.