- First Installation commences with a $14 million contract -
DALIAN, China, Sept. 8 /PRNewswire-Asia/ -- RINO International Corp. (Nasdaq: RINO), a leading producer of proprietary and patented wastewater treatment, desulphurization equipment, and high temperature anti-oxidation systems for iron and steel manufacturers in the People's Republic of China ("PRC"), today announced that it has commenced installation for its new proprietary ammonia based desulphurization system (the "DXT system") on a 280 m2 sinter system at Hunan Lianyuan Iron and Steel Company. The total contract value is $14 million with the installation scheduled to be completed during the second quarter of 2010.
The research and development team at RINO successfully commercialized this technology which was licensed exclusively from Baosteel Group Co., China's largest Steel Producer, which has been applying this technology to its manufacturing process during the past 10 years. RINO's new DXT operating system utilizes coking waste ammonia in the flue gas to effectively remove the sulphur dioxide from the sinter flue gas and produces ammonia sulfate as a by-product which can be used as fertilizer. In addition to filtering out more than 99% of the harmful sulphur emissions, the DXT system utilizes considerably less energy, decreases maintenance costs, and creates a sustainable revenue generating activity through the production of fertilizer. The Chinese government strongly supports technologies which are both environmentally friendly and economical. RINO's customers in the iron and steel manufacturing industry that use the DXT system will be eligible for tax credits and government subsidies to offset the costs.
Mr. Zou, CEO and founder of RINO, stated, "We are extremely pleased with the recent commercialization of our new DXT Flue Gas Desulphurization Technology, which we estimate can be applicable to approximately 80% of our addressable market. Our research and development team helped to introduce what we believe is the most significant breakthrough in desulphurization technology for the Chinese iron and steel market to date. The DXT system changes an existing process to create a much more efficient and effective way of filtering sulphur dioxide emitted during the sintering process. Our methodology does not impact any of the current steel production processes currently in place or the output yield. The DXT system lowers energy consumption, decreases maintenance costs by minimizing corrosion in flu pipelines and sulphuric acid disposal needs, prevents dangerous ammonia leaks, and creates a potential revenue stream from the sale of the fertilizer by-product. We currently have orders for additional DXT systems which may contribute to future revenue growth."
The DXT systems are expected to be priced approximately 30-50% higher than RINO's traditional desulphurization technology. The DXT system is estimated to save iron and steel manufacturing customers approximately 60% of their regular operations, maintenance and upgrading costs, which will increase their profitability. RINO will pay Baosteel Group Co. a certain percentage of the design fee for each contract it secures as part of the 5-year licensing agreement. The licensing fee will vary according to the scale of each project and amounts to approximately 2.1% of the total contract value in the first installation at Hunan Lianyuan Iron and Steel Company.
About RINO International Corporation
RINO International Corporation, through its direct and indirect subsidiaries, including Innomind Group Limited and Dalian Innomind Environment Engineering Co., Ltd., its contractually-controlled affiliate, Dalian RINO Environmental Engineering Science and Technology Co., Ltd. ("Dalian Rino") and Dalian Rino's wholly-owned subsidiaries, Dalian Rino Environmental Engineering Project Design Co., Ltd. and Dalian Rino Environmental Construction & Installation Project Co., Ltd., is a leading provider of environmental protection equipment for the iron and steel industry in China. Specifically, RINO designs, manufactures, installs and services proprietary and patented wastewater treatment, flue gas desulphurization equipment, and high temperature anti-oxidation systems, which are all designed to reduce either industrial pollution and/or improve energy utilization. RINO's manufacturing facility maintains the ISO 9001 Quality Management System and ISO 14001 Environment Management System certifications, in addition to receiving numerous government and industry awards. Additional information about the Company is available at the Company's website: http://www.rinogroup.com .
Cautionary Statement Regarding Forward-Looking Information
Certain statements made in this press release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and statements which may include discussions of strategy, and statements about industry trends future performance, operations and products of each of the entities referred to above. Actual performance results may vary significantly from expectations and projections as a result of various factors, including without limitation and the risks set forth "Risk Factors" contained in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q.
For more information, please contact:
For the Company:
Jenny Liu, Chief Financial Officer
Tel: +86-411-8766-2700
Email: jennyliu@rinogroup.com
Investors:
Matt Hayden
HC International, Inc.
Tel: +1-561-245-5155
Email: matt.hayden@hcinternational.net
