DALIAN, China, Sept. 22 /PRNewswire-Asia/ -- China Industrial Waste
Management, Inc. (OTC Bulletin Board: CIWT) ("China Industrial Waste
Management" or the "Company"), a PRC-based industrial waste processor and
provider of environmental protection, pollution treatment and waste management
design services, announced today that the Company's 90%-owned subsidiary,
Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dalian Dongtai") has
signed with Hunan Luyi Industrial Development Co., Ltd ("Hunan Luyi") and Ms.
Song Wenling to acquire 65% interest of Hunan Hanyang Environmental Protection
Science & Technology Co., Ltd. ("Hunan Hanyang") for RMB15 million
(approximately $2.2 million) in cash on September 18, 2009. After the
transaction, Dalian Dongtai and Hunan Luyi will hold 65% and 35% of the equity
interest in Hunan Hanyang, respectively.
Headquartered in Changsha, the capital city of Hunan Province, Hunan
Hanyang is engaged in the business of treatment and comprehensive utilization
of waste and the management and operation of waste treatment facilities. In
2006, Hunan Hanyang signed a BOT Agreement with the Bureau of Environmental
Protection of Hunan Province, pursuant to which Hunan Hanyang has the right to
construct and operate the Hazardous Waste Treatment Center of Changsha City,
Hunan Province (the "Center") for 25 years upon completion of construction.
The Center is one of fifty-five hazardous waste treatment centers included in
the Chinese government's National Construction Planning of Hazardous Waste and
Medical Waste Disposal Facilities. Hunan Hanyang is also authorized to perform
collection, disposal and treatment of hazardous waste generated from 10 cities
including Changsha, Zhuzhou, Changde, Yiyang, Xiangtan, Yueyang, Zhangjiakou,
Huaihua, Loudi and Xiangxi in northern Hunan Province during the franchising
period.
The total cost to construct the new facility is estimated to be RMB185
million (approximately $27.1 million), 60% of which, RMB110 million
(approximately $16.1 million), will be subsidized by the central government.
The subsidy of RMB110 million will be allocated to Hunan Hanyang by
installment based on construction progress. The Center will include a storage
facility, an incinerator, a hazardous waste landfill, and an industrial
effluent treatment facility, with a total capacity of 46,000 tons per year.
Management anticipates that the Center will be operational in early 2012 as it
will take two years to complete the construction.
"We are pleased to acquire a 65% interest in Hunan Hanyang as this is a
cornerstone for us to execute our expansion into this fast-growing region and
provide advanced hazardous waste processing to the local industry," said Mr.
Jinqing Dong, the Company's Chief Executive Officer. "Changsha is one of the
rapidly developing cities in central China. The growing economy requires more
capacity for industrial waste treatment so as to support a long-term and
sustainable development. We look forward to leveraging our expertise in
environmental protection to capture the growing demand in central China."
During the first six months of 2009, GDP of Hunan Province increased 12.8%
year-over-year to RMB535 billion, 25% of which was contributed by Changsha,
the capital city. The industry development zones in Changsha and cities nearby
have attracted companies in machining, auto manufacturing, pharmaceuticals,
and electronics industries, who are either expanding production capacity or
moving from coastal regions to central China.
About China Industrial Waste Management, Inc.
China Industrial Waste Management, Inc. is engaged in the collection,
treatment, disposal and recycling of industrial wastes principally in Dalian
and surrounding areas in Liaoning Province, People's Republic of China through
its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd.
("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of
and/or recycles many types of industrial wastes, and recycled waste products
used by customers as raw material to produce chemical and metallurgy products.
In addition, Dongtai treats or disposes of industrial waste through
incineration, burial or water treatment, and provides environmental protection
services, technology consultation, pollution treatment services, waste
management design processing services, waste disposal solutions, waste
transportation services, onsite waste management services, and environmental
pollution remediation services. For more information, please visit:
http://www.chinaciwt.com .
Cautionary Statement Regarding Forward-Looking Information
This release may include "forward-looking statements." You can identify
these statements by the fact that they do not relate strictly to historical or
current facts. These statements contain such words as "may," "project,"
"might," "expect," "believe," "anticipate," "intend," "could," "would,"
"estimate," or the negative or other variations thereof or comparable
terminology. These forward-looking statements are based on current
expectations and projections about future events. Investors are cautioned that
forward-looking statements are not guarantees of future performance or results
and involve risks and uncertainties that cannot be predicted or quantified and,
consequently, our actual performance may differ materially from those
expressed or implied by such forward-looking statements. Such risks and
uncertainties include, but are not limited to, the following factors, as well
as other factors described from time to time in our reports filed with the
Securities and Exchange Commission: the timing and magnitude of technological
advances; the prospects for future acquisitions; the effects of political,
economic and social uncertainties regarding the governmental, economic and
political circumstances in the People's Republic of China, the possibility
that a current customer could be acquired or otherwise be affected by a future
event that would diminish their waste management requirements; the competition
in the waste management industry and the impact of such competition on pricing,
revenues and margins; uncertainties surrounding budget reductions or changes
in funding priorities of existing government programs and the cost of
attracting and retaining highly skilled personnel; our projected sales,
profitability, and cash flows; our growth strategies; anticipated trends in
our industries; our future financing plans; and our anticipated needs for
working capital. Forward-looking statements speak only as of the date on which
they are made, and, except to the extent required by federal securities laws,
we undertake no obligation to update any forward-looking statement to reflect
events or circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events.
For more information, please contact:
Company Contact:
Ms. Guo Xin, CFO
Tel: +86-411-8581-1229
Email: hellenguo@chinaciwt.com
Mr. Zhang Dazhi, Company Secretary
Tel: +86-411-8259-5339
Email: darcy.zhang@chinaciwt.com
Web: http://www.chinaciwt.com
CCG Investor Relations:
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
SOURCE China Industrial Waste Management, Inc.