SHANGHAI, Aug. 26 /PRNewswire-Asia/ --
-- Plant site selected to be within an industrial park in Jiangsu Province
-- Strong government support, including preferential land selection with
its own railroad extension and $2.23 million government R&D grant
-- New plant will be a world-class one to differentiate CER from its
competition and provide for sustained growth
China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced the completion of its first steps in its strategic initiative to expand production capacity for its sustained growth. After months of site searching, CER has reached the major terms for the building site of its new manufacturing plant, which is located in an industrial park in Yangzhou City, Jiangsu Province that is along the Yangtze River and close to Shanghai.
The new plant will be a world-class, state-of-the-art facility and will be dedicated to developing and manufacturing large-sized and sophisticated waste heat recovery systems and other related energy efficiency equipment to meet the increasing demands from both China and overseas. The new plant will have its own railroad access connected to the main railway system of China directly extended into its workshop. The rail spur will offer CER an advantage over most of its competitors. Along with strong design and engineering capabilities, some of CER's core competences, the rail link is expected to significantly improve transport and delivery convenience, both of which are crucial in customers' decisions for large-to-mega sized systems. All these attributes of the facility are expected to significantly enhance CER's competitiveness in today's markets, where the trend is towards larger-sized systems. The anticipated completion of the initial phase of the plant is in late 2010.
Because CER's business activities fall within the Chinese government's industry guidelines, the local government will provide strong support to the company with various preferential policies that include a government R&D grant. The grant is estimated at RMB15.2 million (approximately $2.23 million), which will be available to CER over time, and is to support CER's development of world-class waste heat recovery and other energy efficiency technologies. With an aim to facilitate CER's future expansion, primarily for export sales, the local government will also give CER an option on another tract of land that is on the banks of the Yangtze River at a currently determined price. Land with direct access to the Yangtze River is a singularly unique resource in China, even scarcer than railroad access. Such navigable waterway access is expected to make transportation for export orders much easier, thus significantly facilitating export sales and further making CER an efficient global provider of energy recovery systems. The terms of the purchase option are expected to offer CER flexibility in the management of its growth in phases.
At completion, the proposed new facility could provide the company with production capacity equivalent to about $100 million in sales for future growth, based on the company's current historical contract values and sales.
"We are excited about the strong support for our business and expansion plans from the local government. It is a clear reflection of the Chinese government's determination to promote and support the projects and businesses that facilitate energy efficiency and emission reduction with concrete measures based on the nation's long-term guidelines," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "With the increasing market demands and the government's driving force, the new plant, once completed, will lay a solid foundation for our future continued, accelerated growth and for our goal of becoming a world leader in the energy recovery field."
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 vast amounts 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 leader in designing, manufacturing and installing waste heat energy recovery systems which provide facilities with greater energy efficiency. The company's primary focus is on the Chinese market. CER's technology captures industrial waste energy to produce low-cost electrical power, enabling industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate sellable emissions credits. CER has deployed its systems throughout China and in such international markets as Egypt, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers, including: chemical, paper manufacturing, refining (including methanol refining), etc. CER continues to invest in R&D and plans to build China's first state-of-the-art energy recovery system research and fabrication facility to allow it to meet the 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, including CER's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2009.
For more information, please contact:
Cindy Cheng
Tel: +86-21-5556-0020 x503
Email: ir@haie.com
