Xi’an Ruichi Metallurgy Equipment Co. Ltd.

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Xi’an Ruichi Metallurgy Equipment Company produces heat recovery and power generating systems for smelting furnaces that reduce energy consumption and emissions while increasing production output.

Market Opportunity:

• As of 2008 there were 12,000 smelting furnaces with a total metallurgic production capacity of 22.1 million tonnes that was expected to increase to 25 million tonnes by 2011. As a result, the metallurgical industry’s total energy demand is approximately 1 million kWh.

Unique Business Solution:

• Business Model: Xi’an Ruichi operates as an energy service company (ESCO), in which the firm finances the installation and operation of its systems and services by receiving a proportion of the energy savings. Xi’an Ruichi focuses on industrial waste heat recovery and power generation for ferroalloy, iron, steel, chemical, building material, and other high energy consumption industries. Using its proprietary thermal collection and heat management network technologies, Xi’an Ruichi equipment reduces energy consumption while increasing production output. Xi’an Ruichi’s patented technology can be installed on existing furnaces and creates energy savings of about 15% for customers.

• Competitive Advantage:

  • Xi’an Ruichi systems are indigenously developed and manufactured within the firm.

  • Xi’an Ruichi holds 13 technology patents, which been recognized by the National Development and Reform Commission and the World Bank.

  • Xi’an Ruichi has an Original Equipment Manufacturer partnership with a European energy equipment firm.

Environmental & Social Impacts:

• Users of Xi’an Ruichi integrated reheating, heat recovery and power generation systems can reduce the energy consumption of smelting furnaces by as much as 13% while increasing production by 15%.

• Xi’an Ruichi equipment saved 52,100 tonnes of coal in 2009.

Successes:

• Xi’an Ruichi Metallurgy Equipment Company was named “China Top 20 Energy Conservation Service Industry Enterprises” in 2009, was awarded “Xi’an 2009 Most Economic Growth Enterprise,” and has received numerous other awards.

Future Plans & Challenges:

• Xi’an Ruichi plans to expand into southeast Asia.

Partnering with New Ventures:

• In addition to providing meaningful training workshops and introducing Xi’an Ruichi to financial and corporate partners, New Ventures China helped shape Xi’an Ruichi’s strategy to reach more customers. Rather than focusing solely on technology and equipment, Xi’an Ruichi expanded to also provide services as a result of mentoring received from New Ventures China, which helped Xi’an Ruichi grow its market.

Financial information on this company has not been included for confidentiality reasons. Please click here to learn how you can receive more information about this company.

Profile Updated: May 2011