Yulong Eco-Materials to Commence Construction Waste Disposal and Recycling Business Operations Outside of the Pingdingshan Area
By Business Wire News
By Business Wire News
Yulong Eco-Materials Limited (Nasdaq:YECO) (“Yulong” or the “Company”), a China based vertically integrated manufacturer of eco-friendly building products, today announced that it has won a contract from an agency under the Central Government to haul construction waste in connection with the proposed high-speed rail line connecting the city of Zhengzhou in Henan province, and the city of Xuzhou in Jiangsu province.
Specifically, Yulong will be responsible for hauling construction waste from the Liangyuan section of the rail line in the city of Shangqiu, in Henan province. The Liangyuan section is projected to generate over 1.3 million metric tons of construction waste through its completion, with Yulong to receive 19 RMB (or approximately $3) per metric ton of hauled waste. The contract is expected to commence sometime this month, and to service it, the Company will redeploy several hauling trucks from its existing hauling operations in Pingdingshan. Furthermore, using the proceeds from its recently completed IPO, Yulong will soon bolster its Pingdingshan fleet through the planned purchase of an additional 70 trucks.
All of the collected construction waste from the Liangyuan section will be processed at a Company-owned mobile recycling station that was acquired in 2013, which has an annual processing capacity of 2 million metric tons. The station will be located on a site designated by the Shangqiu government. The recycled materials will then be stored onsite and sold locally as raw materials for construction products.
Mr. Yulong Zhu, CEO of Yulong, commented, “We are excited to have won this bid, and to have expanded our hauling and recycling business into a new city. Hauling and recycling is a new business segment for us that we initiated in April 2015 through an agreement and exclusive license for the built-up area of Pingdingshan. We recognize the tremendous new business opportunities created by China’s ongoing modernization, which is creating a strong demand for waste collection and recycling services. We believe that by focusing on a business that addresses critical environmental needs in China, we are building a successful platform that will allow us to grow for years to come.”
About Yulong Eco-Materials
Yulong is a vertically integrated manufacturer of eco-friendly building products and a construction waste recycling company, located in the city of Pingdingshan in Henan Province, China. The Company is currently the leading producer of fly-ash bricks and concrete in that city and in late April 2015, it commenced its hauling and construction waste recycling operations.
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