Turning Pennies into dollars: China RecyclingEnergy Corp. (OTC Bulletin Board: CREG)
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Monday April 6, 2009, 6:52 am EDT
April 6 - China RecyclingEnergy Corp. (OTC Bulletin Board: CREG; "CREG" or "the Company"), a fast-growing industrial waste-to-energy solutions provider in China, recentlyannounced that it has signed a joint venture ("JV") agreement with ErdosMetallurgy Co., Ltd. ("Erdos"), located in Inner Mongolia of China, to reducepollution and improve energy efficiency at Erdos facilities.
Pursuant to the agreement, the JV, which will initially be 80% owned byCREG through Xi'an TCH, its wholly owned subsidiary, will design, install,test, operate, and monitor 11 energy-recycling systems, which generateelectricity and heat from industrial wase, at 54 iron ore furnaces owned byErdos. The JV is expected to reduce Erdos's dependence on the external powergrid by 10% and lessen the need for coal-fired boilers to generate heat. Thisforthcoming energy-recycling project will be one of key projects in theprovince and to date the largest project of this type in China's non-ferrousmetallurgy industry.
The first system ("Phase One") is expected to be completed and start powergeneration by October 2009. Phase One is projected to generate annual revenueof approximately $2.9 million (RMB 20 million) for the next 20 years. Whencompleted, the 11 systems are projected to have a combined capacity of 70 MWwith the potential to grow to 120 MW or more and 30 tons of steam per hour.Together these systems are expected to generate revenue of $38 million (RMB265 million) per year.
"We are extremely excited about the prospects of new revenue streams forus from this JV," said Mr. Guohua Ku, CEO of CREG. "Erdos is one of thebiggest and best-known enterprises in Inner Mongolia, and it has the largestiron-alloy production facilities in China. This JV agreement is significantbecause it validates our engineering ability to build and manage large-scale,clustered power systems that are powered by waste gas and heat, and alsodesigned to reduce industrial pollution. We intend to finance this JV from ourown resources and also take advantage of the favorable loan terms offered bythe local government's stimulus package in Inner Mongolia."
The JV will be set up in the Industrial Park of the town of ChessboardWell, which is located in Otog Banner, Ordos City in Inner Mongolia - the samelocation as Erdos itself. The JV is currently awaiting registration approvalfrom the local authorities.
About Erdos Metallurgy Co., Ltd.
Erdos Metallurgy Co., Ltd. is a wholly owned subsidiary of Inner MongoliaErdos Group Co., Ltd., one of China's leading manufacturing conglomerates withtotal assets of $2.7 billion (RMB 18.3 billion), 24,000 employees and 115subsidiaries in industries ranging from cashmere, coal, power, metallurgy tochemical. Erdos Group is one of China Fortune 500 companies and one of the 520Key Enterprises designated by the Chinese government. Erdos Metallurgy Co.,Ltd. is the largest iron alloy manufacturer in the world by productioncapacity.
About China Recycling Energy Corp.
China Recycling Energy Corp. ("CREG" or "the Company") is based in Xi'an,China and provides environmentally friendly waste-to-energy technologies torecycle industrial byproducts for steel mills, cement factories and cokeplants in China. Byproducts include heat, steam, pressure, and exhaust togenerate large amounts of lower-cost electricity and reduce the need foroutside electrical sources. The Chinese government has adopted policies toencourage the use of recycling technologies to optimize resource allocationand reduce pollution. Currently, recycled energy represents only an estimated1% of total energy consumption and this renewable energy resource is viewed asa growth market due to intensified environmental concerns and rising energycosts as the Chinese economy continues to expand. The management andengineering teams have over 20 years of experience in industrial energyrecovery in China.
For more information about CREG, please visit http://www.creg-cn.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements"relating to the business of China Recycling Energy Corp. and its subsidiarycompanies. All statements, other than statements of historical fact includedherein are "forward-looking statements." These forward-looking statements areoften identified by the use of forward-looking terminology such as "believes,""expects" or similar expressions, involve known and unknown risks anduncertainties. Although the Company believes that the expectations reflectedin these forward-looking statements are reasonable, they do involveassumptions, risks and uncertainties, and these expectations may prove to beincorrect. Investors should not place undue reliance on these forward-lookingstatements, which speak only as of the date of this press release. TheCompany's actual results could differ materially from those anticipated inthese forward-looking statements as a result of a variety of factors,including those discussed in the Company's periodic reports that are filedwith the Securities and Exchange Commission and available on the SEC's websiteat http://www.sec.gov. All forward-looking statements attributable to theCompany or persons acting on its behalf are expressly qualified in theirentirety by these factors. Other than as required under the securities laws,the Company does not assume a duty to update these forward-looking statements.
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