EEW, a German waste-to-energy firm, has been purchased by Beijing Enterprises.
The company, which specialises in technology associated with district heating, is the largest ever Chinese acquisition of a German business.
FT reports that Private equity group EQT said on Thursday it had agreed to sell the operation to the Chinese conglomerate, which is controlled by the Beijing city government and has interests in waste management, gas and water supply, and beer.
With operations in Germany, Luxembourg and the Netherlands, it converts 4.7m tonnes of waste a year into energy. This waste is burnt to produce district heating, steam for industry, as well as enough electricity for 700,000 households.
The acquisition has been highly-motivated by Beijing’s need to deal with a significant waste problem. Nationally, the government has plans to build 300 new waste-to-energy plants over the next three years to tackle the issue.
EEW, which has developed advanced technology for filtering emissions, and was until last year half-owned by E.ON, is regarded as an industry leader in this field.