China Industrial Waste Management Provides Update on Dongtai Organic Waste Treatment Project
DALIAN, China, Nov. 4 /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, today announced construction and regulatory progress
related to the Build-Operate-Transfer ("BOT") municipal sludge treatment and
disposal facility in Dalian, China (the "Project") that is being developed by
the Company's subsidiary Dongtai Organic Waste Treatment Co. Ltd. ("Dongtai
Organic").
The Company announced that six of the Project's 12 fermentation tanks are
now complete and have passed examination by the Dalian Municipal Urban
Construction Administration Engineering Technology Agency and that a biogas
pipe network has been built. Upon launch, the Project's 12 tanks will be able
to process 600 tons of municipal sludge per day and generate 25,000 to 30,000
cubic meters of biogas per day. The biogas generated by these tanks will be
distributed through the network to end-users in Dalian as a supplement to the
gas currently being supplied by the municipality. Dongtai Organic can yield
revenues from the sale of this biogas.
Dongtai Organic is developing the first sludge treatment plant in Dalian
designed and built in the mode of a BOT project, with a 20-year operating term.
The project was commenced in April 2007 and is expected to be operational in
early 2010. As required by the BOT contract, the government will supply raw
material (municipal sludge), and pay processing fees to Dongtai Organic. China
Industrial Waste Management has a 49% ownership interest in Dongtai Organic
via its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co.,
Ltd. ("Dongtai"). The total cost for the Project is approximately RMB 129
million ($18 million), of which Dongtai's share is RMB 63 million ($9 million).
"The development of the Dongtai Organic Waste Treatment Project is an
important step in China Industrial Waste Management's strategy of expanding
into municipal sewage and sludge treatment BOT projects," said Mr. Jinqing
Dong, the Company's Chief Executive Officer. "We believe that a well-operated
BOT project will gain attention and social recognition from the local
government and business community, which may, in turn, provide additional
business opportunities for similar projects in China. Our returns from BOT
projects are derived from fees paid by the government and sales of biogas.
Such BOT projects are able to generate a steady and recurring source of income
for us over a sustained period of time of between 20 and 25 years."
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 launch and successful operation of the
Dongtai Organic Waste Treatment Project, 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.
