Origo Buys Stake in Chinese Tire Company

LONDON (Reuters) – China-focused private equity firm Origo Partners (OPP.L) will spend up to $6.65 million buying a stake in a Chinese recycling company, making its third investment in the region since raising $30 million to fund such deals.

London-listed Origo said on Friday it would spend $3 million acquiring a 10.5 percent stake in Jinan Eco-Energy Technology which designs and operates recycling systems that convert scrap tyres and plastics into fuel oils.

It also has an option to raise its interest to 20 percent at an additional cost of $3.65 million.

“We expect that recycling plants based on Eco-Energy’s technologies will be processing in excess of 100,000 tonnes of scrap tyres and waste plastic per annum by end of 2011 with significant future potential for growth given the estimated 4 billion tyres in landfills around the world,” Origo Chief Executive Chris Rynning said in a statement.

Origo raised $30 million from investors through a share placing earlier this month with a view to investing in China’s mining, agriculture, renewable energy and telecoms sectors.

Earlier this week the company said it had completed investments in two Mongolian exploration companies prospecting for coal, iron ore, copper and gold.

(Reporting by Karolina Tagaris; editing by Paul Hoskins)