DALIAN, China, Aug. 10 /PRNewswire-Asia-FirstCall/ -- RINO International
Corp. (Nasdaq: RINO), through its subsidiaries and controlled affiliates in
the People's Republic of China (collectively, the "Company" or "RINO"),
designs, manufactures, installs and services 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 is providing a summary of a report issued on
July 31, 2009 by the Chinese Ministry of Industry and Information Technology
which details its formal plan for the implementation of sintering
desulphurization equipment at Chinese steel companies. This information can be
found at
http://www.miit.gov.cn/n11293472/n11293832/n11293907/n11368223/12484645.html
and following is a summary of what was reported, in addition to RINO specific
commentary related to how it will capitalize on this opportunity.
To provide some background, the sinter at a steel production facility
contains equipment where powdered iron-ore is mixed with coking coal or
anthracite and burned at high temperatures for further processing in the blast
furnace. It is one of the first components of the steel production process and
as a result significant amounts of air pollution are generated, which are
comprised of SO2 (sulphur dioxide), NO2 (nitrogen dioxide), dust and metal
particles. RINO International, Inc. was the first company in China to develop
a flue gas desulphurization (FGD) solution specifically for the sinter. This
multifaceted system with patented automation technology was designed to
significantly reduce harmful air pollutants, specifically curbing SO2
emissions by up to 99%. Prior to 2005, when the government initially began to
address this problem, there was no filtration system available.
As detailed in the report, China is estimated to have approximately 500
sinters with a total sintering bed capacity of 53,820 m2. To date, less than
10% of the sinters, which in range in size, have been equipped with FGD
systems. The government estimates through May 2009 that a total of 40 sinter
FGD installations have been completed with RINO effectuating 28 of these.
Combined, these FGD systems represent approximately 6,312 m2 of sinter space
with 82,000 tons of annual desulphurization capacity.
The new policy carries important implications for RINO's business as it
prioritizes the steel sinter FGD as a priority environmental project, sets
specific desulphurization targets, and enables both the central and local
governments to provide priority funding for the installation of FGD equipment,
while offering further support for domestic based technology. The government
plan calls for the number of sinters to be equipped with FGD systems to double
annually through 2011. Specifically, the government aims to install FGD for an
additional 15,800m2 of sintering bed capacity with a total of 200,000 tons of
annual desulphurization capacity. To support adoption, the government will
encourage the build-out through BOT (build-operate-transfer) ownership
structures which would allow the financier to operate the system for up to 20
years and then transfer ownership to the steel producer. The government will
increase its ongoing inspection of SO2 emission by steel companies and plans
to install on-line, real time monitoring devices to ensure compliance.
Mr. Zou Dejun, President and CEO of RINO International, commented, "We are
very pleased with the recently published guidelines that support accelerated
adoption of FGD systems found specifically in the steel industry. We believe
that the addressable market for sinter FGD systems specific to RINO is over
200, which includes sinters at least 90m2 in size, and creates a billion
dollar plus opportunity for our Company. We anticipate our growth will
accelerate during the coming year as the government mandate creates an impetus
for steel companies to become compliant while enforcing air emission
guidelines. We have seen new bidding activity pick up in response and are
currently pursuing a couple of very large sinter projects."
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 statement in this press release may contain forward-looking
information about the Company. 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. This is a summary of the report
issued by the Chinese Ministry of Industry and Information Technology and is
not a complete translation. This information could be subject to change
without notice. RINO did not independently verify information provided in the
report.
For more information, please contact:
For the Company:
Jenny Liu, CFO
Tel: +86-411-8766-1233
Email: jennyliu@rinogroup.com
Investors:
HC International, Inc.
Matt Hayden
Tel: +1-561-245-5155
Email: matt.hayden@hcinternational.net
