DALIAN, China, Oct. 21 /PRNewswire-Asia/ -- China Industrial Waste Management, Inc. (OTC Bulletin Boards: CIWT) ("China Industrial Waste Management" or the "Company"), a leading environmental services and solutions provider in China, announced on October 10, 2009, that the Company's 90%-owned subsidiary, Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dalian Dongtai") completed the previously announced acquisition of a 65% equity interest in Hunan Hanyang Environmental Protection Science & Technology Co., Ltd. ("Hunan Hanyang") for RMB15 million (approximately $2.2 million).
Dalian Dongtai purchased 46% of the equity interest in Hunan Hanyang from Hunan Luyi Industrial Development Co., Ltd. for RMB10,620,000 (approximately $1.6 million) and 19% of the equity interest from Ms. Song Wenling for RMB4,380,000 (approximately $0.6 million).
Headquartered in Changsha, the capital city of Hunan Province, Hunan Hanyang is engaged in the business of treatment and comprehensive utilization of waste, and management and operation of waste treatment facilities. In 2006, Hunan Hanyang signed a franchise 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 the 55 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 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. As notified by the central government, Hunan Hanyang will receive the first installment of RMB21 million (approximately $3.1 million) upon commencement of construction. 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. The Company expects to begin construction on the Center in early 2010, and it will be operational in 2012.
"We are very excited to be acquiring a majority interest in Hunan Hanyang," said Mr. Jinqing Dong, the Company's Chief Executive Officer, "With this acquisition, China Industrial Waste Management expands its geographic footprint to central China. We believe the Hunan Province is an attractive market for industrial waste treatment given its success in attracting industries that are expanding production capacity and moving inland from the coastal regions. We expect Hunan Hanyang to benefit from the growing concentration of industry in central China and the ongoing policy of the Chinese government of encouraging long-term and sustainable development in the central regions of the country."
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 the Company's website (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
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
