logo footer May 28, 2019

Amane Advisors hosts financial session as part of the China Membrane Industry Summit Conference

On May 11, the China Membrane Association Annual Summit was held in Ningbo, Zhejiang Province. This annual conference, sponsored by China Membrane Industry Association, is a huge event in the Chinese membrane industry, with more than 500 attendees. The presence of leading national membrane manufacturers, international experts, and government officials made the summit flourish.

As the co-organizer of the summit, Amane co-sponsored the closed-door financial meeting. Amane is honored to have invited leading domestic membrane manufacturers, investment banks, consulting institutions and law firms, including Asian Investment Bank, Deloitte, Agricultural Bank, Shengang Securities, Huayi Group, and Ningbo Jingyuan Environmental Protection.

As the host of this closed-door summit, Amane’s China Partner Alex Zhang led an in-depth discussion with Chinese financial institutions and industrial enterprises. The discussion aimed to address the investment and financing needs, share classic investment and financing cases, and identify the future opportunities and challenges in China’s membrane industry.

Since 2011, China’s membrane industry has developed vigorously, with the market expanding at an annual growth rate of more than 25%. In 2018, China achieved a national output value of 243.8 billion RMB, an increase of 19% compared to the previous year. The total number of membrane suppliers has now reached 2,038.

However, China’s membrane industry also has its market defects. For example, the scale of enterprises is generally small. The production capacity is limited. Financial support is needed. Global market presence is weak compared to strong global players.

Amane also hopes that with the help of this closed-door meeting, more financial investment institutions will recognize the investment opportunities in China’s membrane industry, achieving a win-win situation for both China’s membrane industry and global investors.

Key insights:

1. China’s domestic market manufacturers now have stronger global market competitiveness against leading global players. For example, Ningbo Jingyuan is taking up Sumitomo PTFE membrane market. SINAP is replacing Kobota Flatsheet in the global MBR market.
2. The Chinese membrane market is growing very fast, driven by increasingly stringent environmental standards. Chinese membrane companies need capital to enlarge production capacity and improve product quality.
3. Many Chinese membrane companies have planned to expand to overseas markets, in need of strategic financial support by global investors.
4. This conference has presented us a great opportunity for international funds or group companies to invest or acquire China domestic membrane manufacturers. Last year, Morgan Stanley invested USD 30 billion in one local MBR system supplier (Hyperon). In one year, the market sales of Hyperon surged by 60%.
5. China Membrane Association has partnered with Amane for our strong expert knowledge, rich experience, and broad connections within the industry as well as with the Chinese financial sectors. Amane will continue to provide fundraising and M&A services for participants after the conference. If you are interested in entering or investing in the China membrane industry, please contact Amane China.