MRO Magazine

Yulong Signs Agreements Aimed at Allowing Sale of Its Recycled Waste Materials for Use in Major Road Paving Projects

October 15, 2015
By Business Wire News


Yulong Eco-Materials Limited (NasdaqCM:YECO), an eco-friendly building products and construction waste recycling company, today said it has signed two cooperation agreements expected to speed the company’s ability to sell its recycled waste materials for use in major road and highway construction projects in Henan Province.

As per the agreements, signed with the Henan Communication Science and Technology Research Institute, Ltd., the parties expect to produce and submit to Henan Province authorities by November 30 a technical code governing the use of recycled construction waste materials in the production of roadbed — a road’s surface — in the Province. This code would include such parameters as the type and amount of recycled construction waste used in the roadbed, as well as the roadbed’s thickness, strength and other qualities affecting overall roadbed quality and safety.

Yulong will subsequently file this code with the National Bureau of Quality and Technical Supervision, after which the company will be able to sell its recycled construction waste to road contractors performing major projects such as highways, expressways, and other high quality road projects in Henan Province.

These sales could commence as early as February, said the company.

Yulong currently owns over one million cubic meters of recycled construction waste in Henan Province, which the company expects to sell at 15 to 20 RMB, or about $2.35 to $3.15, per cubic meter, thus generating revenue of 15 to 20 million RMB, or approximately $2.35 to $3.15 million, in calendar 2016.

Going forward, Yulong expects to sell about three million cubic meters of recycled waste materials per year, representing further potential annual revenue of about 45 to 60 million RMB, or about $7.1 to $9.5 million.

“Recycled waste sales represent a new revenue and profit center for us,” said chief executive Mr. Yulong Zhu. “We expect that, once this revenue stream begins, it will augment our total annual revenue by 15 to 20 percent.”

In addition, said the CEO, the use of recycled waste for road and highway construction would help Henan Province reduce the use of environmentally harmful components such as sand, stone and similar materials, whose manufacture causes significant greenhouse gas emissions.

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 Pingdingshan’s leading producer of fly-ash bricks and concrete as well as its exclusive provider of waste management services.

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