DALIAN, China, Feb. 1 /PRNewswire-Asia/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT) ("China Industrial Waste Management" or the "Company"), a leading environmental services and solutions provider in China, announced today that the Company's subsidiary, Hunan Hanyang Environmental Protection Science & Technology Co., Ltd. ("Hunan Hanyang"), received a RMB 21 million (approximately $3.1 million) government subsidy, representing the first installment of a total expected government subsidy of RMB 110 million (approximately $16.1 million).
As previously disclosed, the total expected government subsidy represents 60% of the total projected RMB 185 million (approximately $27.1 million) cost to construct the Hazardous Waste Treatment Center of Changsha City, Hunan Province ("the Center"). Hunan Hanyang has 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 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 and it will be responsible for collection, disposal and treatment of hazardous waste generated from 10 cities in northern Hunan Province including Changsha, Zhuzhou, Changde, Yiyang, Xiangtan, Yueyang, Zhangjiakou, Huaihua, Loudi and Xiangxi. 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 anticipates it will take two years to complete the construction and the Center will be operational in early 2012.
"We are pleased to receive the first installment of the government subsidy to construct a Hazardous Waste Treatment Center in Changsha City, the capital city of Hunan Province," said Mr. Jinqing Dong, Chief Executive Officer. "Hunan Province is an attractive market for China Industrial Waste Management. Hunan's GDP growth rate during the first three quarters of 2009 was 13.1%, significantly higher than China's national GDP growth rate of 7.7% over the same period. In addition, Hunan is home to several large state-owned enterprises and large companies operating across many growing industries. We believe the strong industrial performance of the province offers our company an attractive market opportunity for future growth as both government and industry look to establish stricter environmental standards, while continuing to increase domestic market demand."
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. Athan Dounis, Account Manager
Tel: +1-646-213-1916
Email: athan.dounis@ccgir.com
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
