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Analysis of Market Competition Pattern and Development Prospect of Soil Remediation Industry in 2019

Jun 03, 2019

In 2019, the Soil Pollution Prevention and Control Law was officially implemented, and the supporting Technical Guidelines for Contaminated Land Risk Management and Soil Remediation Effect Assessment (Trial) and some other documents gradually normalize the technologies and remediation effects of the industry.
Meanwhile, judging from the annual remediation funds appropriated by the central government, the budget in 2019 has experienced a transition after a decline, with a sharp increase of 42.9% to CNY5 billion, and the proportion of soil remediation funds among pollution prevention funds (atmosphere, water and soil) also grows from 7.95% in 2018 up to 8.33% in 2019.

With the continuous improvement of laws & regulations and the sufficient willingness of the central government to pay funds, polluting enterprises and real estate enterprises are accelerating the overall arrangement of soil remediation. At present, there are three main types of participants in the soil remediation industry: the first kind is environmental protection-related research institutes and universities, which are technologically advanced with the support of scientific research capabilities, and are mainly involved in the investigation and evaluation of contaminated sites, equipment R&D and contracting of partial remediation projects, with a relatively weak overall project contracting capacity. The typical representatives are the Institute of Geographical Sciences and Natural Resources Research and Nanjing Institute of Soil Science under Chinese Academy of Sciences.
The second kind is domestic professional environmental restoration engineering companies, most of which are specially established by mature environmental protection engineering companies to develop the soil remediation market, and some are transformed from local environmental protection departments and investment companies, having rich experience in order acquisition, project management, and project operation. The typical representative enterprises are Beijing GeoEnviron Engineering & Technology, lnc., BCEG Environmental Remediation Co., Ltd. and Zhongke Dingshi Environmental Engineering Co., Ltd.

The third kind is internationally famous remediation companies and joint ventures, such as Japan Dowa Group, US TRS, MC2 and ERM Group, and Dutch FUGRO Group. A variety of enterprises mainly rely on consulting management, analysis and testing, and cooperate with domestic engineering companies to establish joint ventures to directly access to the soil remediation process.
In general, research institutes have advantages in technology. Domestic enterprises have rich experience in mature project operations, and foreign-funded enterprises are mainly cooperative. The overall market competition is at an early stage, and the pattern has not yet formed. In addition, since the soil remediation has been in the stage of detailed investigation and transition to governance in the past three years, the market structure has changed greatly. Coupled with the start of some local restoration cycles, there will inevitably be a rapid growth in the initial stage of industrial development and the emergence of SMEs, so the concentration is not high.