Approval of Technical Code by Henan Authorities Will Enable Yulong to Commence Sales of Recycled Waste and to Generate Revenue of Approximately $5 Million in Fiscal 2016
By Business Wire News
By Business Wire News
Yulong Eco-Materials Limited (NasdaqCM:YECO), an eco-friendly building products and construction waste management company, today announced that the provincial technical code governing the use of recycled construction waste materials used in the production of roadbed – a road’s surface – was preliminarily approved by the Department of Transportation of Henan Province. This code was submitted by the Company in cooperation with the Henan Communication Science and Technology Research Institute, Ltd.
The Company expects to receive final approval for this technical code from the Henan Bureau of Quality and Technical Supervision before 2015 year-end, at which time it will become the standard code for the road construction industry in Henan.
As previously announced, this technical code provides improved parameters related to the type and amount of recycled construction waste used in the roadbed (the roadbed’s thickness, strength and other qualities affecting overall roadbed quality and safety).
Following the final approval, the Company’s recycled waste materials can be used in major road paving projects such as highways, expressways and other high quality road paving projects in Henan Province. Based on the amount of recycled construction waste expected to be generated by current projects, Yulong expects to sell more than two million cubic meters of recycled waste materials in fiscal 2016, at about $2.50 per cubic meter, thus generating approximately $5 million in revenue.
Mr. Yulong Zhu, Yulong’s CEO, noted, “Since the beginning of fiscal 2016, we have commenced several long-term, multi-million dollar construction waste management projects that should generate significant revenue from hauling, recycling, as well as the sale of recycled materials, for years to come. It is estimated that the demand for recycled construction materials by major highway contractors in Henan Province is over 10 million metric tons annually. Once the technical code is approved by the local authorities, we expect to start selling such recycled waste materials, and this segment of our business should grow substantially in the coming months. Total revenue generated from our construction waste management business is expected to represent over 25% of Yulong’s total revenue in fiscal 2016.”
About Yulong Eco-Materials
Yulong is a vertically integrated manufacturer of eco-friendly building products and a construction waste management company located in the city of Pingdingshan in Henan Province, China. The Company is currently Pingdingshan’s leading producer of fly-ash bricks and concrete as well as the exclusive provider of construction waste management services for the cities of Pingdindshan and Shangqiu.
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