Company also Restructures $5 Million Loan Agreement
SHANGHAI, Jan. 11, 2011 /PRNewswire-Asia/ -- China Energy Recovery Inc. (CGYV.PK) ("CER"), an international leader in the design, fabrication and installation of waste heat recovery systems, announced that it was recently awarded contracts for the design, manufacture and installation of two, major waste heat recovery systems from Ningbo Xinfu Chemical Technology Co., Ltd. of Ningbo and Zhenjiang Kailin Clean Heat Energy Co., Ltd. of Zhenjiang City, respectively.
The company also announced that it executed an agreement with Hold & Opt Investments Ltd. on Jan. 7, 2011, to replace and continue until Sept. 29, 2012 a $5 million (US) lending arrangement originally entered into on March 21, 2009.
New contract wins
Contracts signed with Ningbo Xinfu and Zhenjiang Kailin represent a total of approximately $74.7 million (US) to CER. Both systems are scheduled to be completed in the fourth quarter of this year.
The system for Ningbo Xinfu, in a contract valued at $28.4 million (US), will be part of a new sulfuric acid plant and is scheduled for completion in December. This system is capable of producing up to 92 tons of steam-per-hour at 485° C and 5.4 MPa from operations at the plant.
The system for Zhenjiang Kailin Heat Energy, in a contract valued at $46.3 million (US), will be part of a new sulfuric acid plant and is scheduled for completion in October. This system is capable of producing up to 122 tons of steam-per-hour at 485° C and 5.4 MPa from operations at the plant.
Contracts between CER and Zhenjiang Kailin may be considered related-party transactions because CER and Green China Resources, which is Zhenjiang Kailin's parent company, have certain shareholders that are common to both companies at aggregate levels above 5% of ownership. However, because management at each company is different and the management and directors at each customer are independent of CER, CER believes the contracts were negotiated and approved on an arms-length basis.
"CER is gratified to have been selected to participate as waste heat recovery systems supplier for these important, new-plant construction projects in China," CER Chairman and Chief Executive Officer Qinghuan Wu, said. "The magnitude of each project and the fact that their respective completion dates are within months of each other, reflects CER's newly expanded production and design capabilities, which enable us to take on a greater number of significant new projects and complete those projects in shorter periods of time."
What is Waste Heat Energy Recovery?
Industrial facilities release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering as much as two-thirds of that wasted energy and converting it into usable heat energy or electricity, dramatically lowering energy costs. Energy recovery systems are also capable of lowering heat pollution and capturing harmful pollutants that would otherwise be released into the environment. It is estimated that if energy currently wasted by all the U.S. industrial facilities could be recovered, it could produce power equivalent to 20% of U.S. electricity generation capacity without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.
About China Energy Recovery, Inc.
CER is an international engineering and manufacturing company that specializes in the design, construction and installation of waste heat energy recovery systems that capture and convert industrial waste energy produced by heavy industrial processes such as petroleum and chemicals refining, paper manufacturing and refining into low-cost electrical power. This enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint and generate salable emissions credits. The company's primary focus is the Chinese market; however, CER's systems are operating in heavy industrial plants located in Egypt, Korea, Vietnam and Malaysia. CER is building China's first state-of-the-art, energy recovery system research and fabrication facility, which will allow CER to meet increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp. Information on CER's website does not comprise a part of this press release.
Forward-Looking Statement Disclaimer
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the Securities and Exchange Commission.
