Patented Plasma Technology to Begin Generating Revenues During the Fourth Quarter of 2008
DALIAN, China, Sept. 24 /Xinhua-PRNewswire-FirstCall/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT), a processor of industrial wastes and provider of environmental protection, pollution treatment and waste management design services, announced today that it has completed construction for Dalian Zhuorui Resource Recycling Co., Ltd., a subsidiary company which recycles waste catalyst for the oil industry. This project has now entered the equipment-testing stage and is ready for commercialization.
In 1996, China Industrial Waste Management began developing a technology to process waste catalyst generated from the oil refinery industry, which contains valuable metals. These efforts successfully led to the development of a plasma technology in 2006 which enables waste catalyst to be completely reused and is protected by several patents. To manage this business, Dalian Zhuorui Resource Recycling Co. Ltd. (Zhuorui) was formed, of which Dongtai Industrial Waste Treatment Co. Ltd. (a CIWT subsidiary) owns 70%. Zhuorui has three workshops including a plasma treatment plant and two alloy product processing plants. The Company expects to finish testing and commence commercialization and revenue production activities by the end of October, 2008.
The project has received subsidies from several government funds including the State Ministry of Science and Technology Innovation Fund, Liaoning Province Technology Innovation Fund, Central Environmental Protection Fund from the State Environmental Protection Administration (SEPA), and the Dalian Development and Reform Commission Fund. It also received the Dalian Science and Technology Progress Award in 2001. SEPA identified it as a Key National Environmental Protection Practical Technology in 2005, while the Company has applied for an innovation patent and two new utility patents for this leading technology in China.
Catalyst is a raw material utilized in the refinery industry and contains several valuable metals which are absorbed when it reacts with crude oil during the production process. The equipment utilizes plasma technology to separate metal alloys from the waste catalyst while converting the remainder of the catalyst to a form of vitreous slag. The valuable metal alloys include molybdenum, cobalt, nickel, and vanadium, which will serve as Zhuorui's main source of income. The Company expects to produce up to 1400 tons of metal products annually which would be sold at an average price of $11,000 per ton based upon today's prices. In addition, the vitreous slag can be sold to the cement industry where it can be utilized as one of its key raw materials, creating another source of potential revenue.
Currently, oil industry in Northeastern China generates about 10,000 tons of waste catalyst every year. The city of Dalian is the national strategic reserve base of oil and a processing center which includes two major oil refineries. These two facilities have the capacity to process 10 million and 20 million tons of crude oil per year respectively while collectively generating approximately 3,000 tons of waste catalyst annually, which is not currently being treated. Zhuorui has the exclusive right to collect waste catalyst from these two refineries and the company anticipates the Zhuorui subsidiary will generate at least $10 million in revenues for 2009. While Zhuorui will initially have the capacity to process 5,000 tons of waste catalyst annually, the company expects to be able to increase its production capacity to 10,000 tons per year based on future market demand.
"We are very pleased to complete construction for Dalian Zhuorui Resource Recycling Co., Ltd. This major milestone allows CIWT to officially launch this new revenue producing business unit during the fourth quarter of 2008. This will not only allow us to further diversify our environmental businesses, but also complements our core industrial waste treatment business," commented Mr. Dong, Chairman and CEO of China Industrial Waste Management, Inc.
"Our team is currently testing the equipment and we expect to have the facility in production at the end of October. This new business unit will enable China Industrial Waste Management to immediately start recycling waste catalyst generated by the two oil refineries in the Dalian area, which are now both under contract. While other extraction processes exist, we believe the success of our proprietary technology will attract more demand for recycling waste catalyst from other geographic areas in China. Additionally, we believe that the operating foundation we have put in place will enable us to capitalize on new projects coming on line in the near term while taking advantage of new opportunities in this rapidly growing industry," concluded Mr. Dong.
About China Industrial Waste Management, Inc.
China Industrial Waste Management, Inc., through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd., is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian, China and surrounding areas in Liaoning Province. The Company provides waste disposal solutions to its more than 600 customers from facilities located in the Economic and Technology Development Zone, Dalian, PRC. Dalian Dongtai treats, disposes of and/or recycles a variety of industrial wastes through incineration, burial and/or water treatment, and recycles, processes and/or resells waste products for use as raw materials in the production of chemical and metallurgy products. In addition, Dalian Dongtai provides environmental protection services, technology consultation, pollution treatment services, and waste management design processing services.
Forward-Looking Statements
This release includes "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 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.
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For further information, please contact:
Company Contact:
Mr. Zhang Dazhi, Company Secretary
Tel: +86-411-8259-5339
Email: darcy.zhang@chinaciwt.com
Web: http://www.chinaciwt.com
Investors Contact:
Mr. Alan Sheinwald, HC International
Tel: +1-914-669-5340
Email: alan.sheinwald@hcinternational.net
Web: http://www.hcinternational.net
SOURCE China Industrial Waste Management, Inc.
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