Sancon Expands, Expecting to Benefit from WEEE Rules

Sancon Resources Recovery, Inc., an environmental services and waste recycling company with operations in both China and Australia, expects to benefit from the Chinese regulations on the administration of the recovery and disposal of waste electrical and electronic products (WEEE Regulations).

Promulgated on Feb. 25, 2009 and effective as of Jan. 1, 2011, WEEE Regulations are aiming at establishing a system for the disposal and recovery of waste electrical and electronic products, facilitating comprehensive utilization of resources and circular economy development, protecting the environment and safeguarding human health.

In addition to establishing a licensing system for enterprises, the WEEE Regulations set forth labeling obligations on manufacturers and importers, according to which information such as relevant toxic or hazardous substances and methods for recovery/disposal has to be indicated on the products or their introduction manuals.

A dedicated governmental fund will be established to be used as allowance for activities of recovery and disposal of electrical and electronic products. Manufacturers of electrical and electronic products, consignees, and their agents are required to pay fees which will go directly into the fund.

Sancon is one of the few foreign companies being awarded a waste management license in China. Since 2002, the company has been developing its operation in waste management and recycling in the country.

According to China's State Council (Environment Protection Department) and China's National Statistical Bureau, its social electronic inventory in 2006 includes 490 million televisions, 220 million refrigerators, 260 million wash machines, 150 million air conditioners, and 80 million computers. These units contribute to a total of 1,200 million units of electronic goods.

The disposal volumes for the same items in 2006 are: 4.6 million televisions, 2.1 million refrigerators, 2.5 million wash machines, 1.4 million air conditioners, and 2 million computers. This indicates an approximate 1 percent disposal rate. China's National Statistical Bureau expects the e-waste disposal rate to grow between 5-10 percent annually in China. This statistics exclude a large volume of electronic goods such as mobile phones, photocopiers, fax machines, and printers.

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