New | China's Yulong Eco-Materials finds value in waste bricks and concrete

Henan, a province notorious for construction waste, has been picked by Beijing as the base for a pilot franchising scheme for the recycling industry, with one franchise winner already having gone public in the United States to raise funds for expansion.

Yulong Eco-Materials, Pingdingshan's largest maker of environmentally friendly bricks and concrete containing fly-ash - a by-product of coal-fired power generation - raised about US$14 million on New York's Nasdaq Stock Market in June.

Yulong's bricks contain at least 30 per cent fly-ash instead of cement, resulting in less energy and materials-intensive production.

"In the past, there has been a lack of oversight on how construction waste should be processed, resulting in disorderly disposal to cut costs and causing harmful environmental consequences," chief executive Zhu Yulong told the South China Morning Post. "Now, from waste collection, transportation to recycling, the whole supply chain is regulated to stem the chaos."

According to state media, cities in Henan, China's third-most populous province, had accumulated 500 million tonnes of construction waste at the end of last year, adding to fears of soil and underground water pollution.

Provincial capital Zhengzhou is estimated to be home to demolition sites covering 71 million sq metres - equivalent to 10,000 soccer fields - according to the People's Daily.