China Tianying is described as an environmental protection company involved in the energy-from-waste sector. An article published on April 8, 2024, stated the company had debts of 8.5 billion yuan as of September 2023. Despite these significant debts, recent large-scale investments have seen that debt balloon to 10.7 billion ($2.4 billion NZ) by July 2024. China Tianying (CNTY) is the controlling shareholder of South Island Resource Recovery Limited (SIRRL), the company proposing a waste-to-energy plant for Glenavy, Waimate.
Despite huge debts, SIRRL application passes OIO's 'benefit' test.
Despite China Tianying (CNTY), the controlling shareholder of South Island Resource Recovery Limited (SIRRL), carrying $NZ 2 billion in debt as of September 2023, the Overseas Investment Office (OIO) permitted SIRRL to acquire sensitive land and significant business assets. The proposed $350 million waste-to-energy investment was determined to meet the benefit test. The OIO provided an overview of CNTY in its recommendation report, stating that waste-to-energy was the company’s “core business.”
Surely, such a large debt acquired by a company whose ‘core business’ is waste-to-energy should raise some alarm bells when determining an application involving the building of a waste-to-energy plant. Due diligence should have suggested a risk that such debt may compromise SIRRL’s ability to complete the proposed development, given that CNTY is funding the project.