HONG KONG, July 18 /Xinhua-PRNewswire-FirstCall/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today announced that it has signed a Share Transfer and Subscription Agreement with Zhejiang Jia Huan Electronic Co. Ltd., ("Jia Huan") to acquire a 20% equity interest in Jia Huan for about US$ 2.5 million. The acquisition of an equity stake in Jia Huan is financed from Euro Tech's internal resources.
About Jia Huan
Jia Huan, an established and profitable company, has been in business since 1969. 95% of Jia Huan's business is related to air pollution control and less than 5% is for water and wastewater treatment. Jia Huan designs and manufactures automatic control systems and electric voltage control equipment for electrostatic precipitators which are major air purification equipment for power plants, cement plants and incinerators to remove and collect dust and pollutants from the exhaust stacks.
TC Leung, Chairman and CEO of the Company, commented, "As China is the world's biggest air and water polluter, she is under tremendous pressure to cut emissions of key air and water pollutants, thus creating plentiful business opportunities for companies in the environmental protection field. By securing a 20% equity in Jia Huan's business and another 20% equity in Zhejiang Tianlan Desulfurization and Dust Removal Co. Ltd., we believe, Euro Tech, already in water pollution control business, will have two strong strategic partners to help her make inroads into the rapidly growing air pollution control market in China."
Certain statements in this news release regarding the Company's expectations, estimates, present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, or expects, or words of similar import, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements indicate uncertainty and the Company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, having the Company's offices and operations situated in Hong Kong and China, doing business in China, competing with Chinese manufactured products, competing with the Company's own suppliers, dependence on vendors, and lack of long term written agreements with suppliers and customers, development of new products, entering new markets, possible downturns in business conditions, increased competition, loss of significant customers, availability of qualified personnel, negotiating definitive agreements, new marketing efforts and the timely development of resources. See the "Risk Factor" discussions in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for its fiscal year ended December 31, 2006.
CONTACT:
Euro Tech Holdings Company Limited, Hong Kong
T.C. Leung, Chairman and CEO, or
Jerry Wong, CFO
Tel: +852-2814-0311
Fax: +852-2873-4887
Website: http://www.euro-tech.com
