A Chinese tire and plastic waste recycling firm has signed a memorandum of understanding with Chatham-Kent to invest $15 million to establish a Canadian manufacturing base, research and development centre here.
Niutech Environment Technology Corporation signed the memorandum Thursday in Shanghai. It is part of the $1.2 billion in commercial contracts and agreements signed as part of Prime Minister Justin Trudeau’s trip to China.
The investment, which also has a component involving demonstration projects showcasing the company’s technology, is planned to create 50 jobs.
Chatham-Kent Chief Administrative Officer Don Shropshire said officials from the firm were here last month and have met with economic development staff and the mayor on several occasions.
“They have toured the area for a site that meets their needs but they haven’t committed to one as of yet,” he said.
Although he stressed the memorandum is non-binding, Shropshire said he still considers it extremely positive.
“I consider this as a major step forward to making a commitment to invest,” he said.
A media release from Chatham-Kent quotes Mr. Niu, president of Niutech as saying, “With all the meetings with Chatham-Kent, we have seen a fantastic investment environment. We look forward to this investment in Chatham-Kent. This is our entry into the North American market. We are very happy to move our project forward.”
Using such memorandums is a common practice in matters of this type.
“This shows me they’re serious about moving forward.”
According to its website, Niutech was founded in the 1980s and is “the first national high-tech enterprise which exclusively specializes in technology research and equipment manufacture of scrap tire and waste plastic pyrolysis for oil extracting, oil distillation as well as carbon black further processing.”
Through more than 20 years continuous innovation, development and research, Niutech has become the leader of scrap tire and waste plastic recycling in China and the world.”
The firm earned the National Award for Science and Technology Progress of China and is the holder of 50 national and 20 international patents.
A total of 56 new commercial contracts and agreements were signed between Canadian and Chinese companies as part of the prime minister’s week long visit that began August 30.
A release from the prime minister’s office said, “These commercial signings – worth $1.2 billion – demonstrate the breadth of the Canada-China commercial relationship that involves people and businesses from a wide diversity of sectors, and a variety of export, investment, partnerships and collaborative ventures.”
“In meetings with government and business leaders – including women entrepreneurs – we explored ways of connecting even more Canadian businesses, especially small and medium-sized enterprises, to the increasingly important Chinese market. I am encouraged by the discussions today, and know they will go a long way in fostering understanding between our two countries and creating opportunities for our middle class.”
China is the world’s second largest economy, and Canada’s second-largest single-country trading partner.
Two-way merchandise trade between Canada and China amounted to nearly $85.8 billion in 2015.
Mayor Randy Hope was unavailable for immediate comment.
