Company Receives Second Quarterly Payment for its Waste Water Treatment and Completes Construction of Incineration Plant
DALIAN, China, Jan. 26 /PRNewswire-Asia-FirstCall/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT), an industrial waste processor and provider of environmental protection, pollution treatment and waste management design services in the People's Republic of China ("PRC"), today announced it has received its second quarterly payment from the local Dalian government.
Dongtai Water Recycling Co., Ltd., an indirect majority-owned subsidiary of China Industrial Waste Management, Inc., received a quarterly payment of $0.25 million in connection with its operation of the municipal
Build-Operate-Transfer (BOT) waste water treatment facility for the city of Dalian. The facility, which commenced operations on June 21, 2008, has processing capacity of approximately 30,000 metric tons/day. Since commencing operations, the Company has received two quarterly payments from the local government based on the amount of waste water treated by the facility.
"We are very pleased to see steady cash flow generated by our waste water subsidiary. This project is expected to bring us 20 plus years of stable recurring income backed by government tax revenue and confirmed through our franchise agreement. We expect future income to grow as wastewater processing increases over time. BOT projects contribute stable earnings and will be an important composition of our business and growth going forward," commented Mr. Jinqing Dong, Chairman and CEO of China Industrial Waste Management.
Separately, the current expansion project of the Company's operating subsidiary, Dongtai, which operates one of fifty-five hazardous waste treatment centers sponsored by the National Development and Reform Commission and one of two centers in Liaoning province, has completed construction of its Incineration Plant. On-site construction has entered the winter break and will resume in mid-March. The Company expects the Plant to be operational by second half of 2009.
Additionally, Zhuorui Resource Recycling Co., Ltd, an indirect
majority-owned subsidiary of China Industrial Waste, Management Inc., which provides plasma arc melting, separation and purification of waste catalysts, continues final testing of its oxidation baking system, with several
large-scale trials completed to date. However, the continuity of the production process is not yet stable and engineers are adjusting the production process to improve the effective yield to desired levels.
"After several years of preparation, we have several projects scheduled for completion in 2009 driving further growth and complementing our business model. In 2009, most of the world will be impacted by the global slowdown in economic growth. However, China's environmental industry continues to see additional growth opportunities due to more broad based government regulations and the recently announced economic stimulus plan. We are positioned extremely well to take advantage of these opportunities while capitalizing on the
long-term, secular growth drivers for our industry." Mr. Dong concluded.
About China Industrial Waste Management, Inc.
China Industrial Waste Management, Inc., International Ltd., 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.
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.
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