Yulong Wins Contract to Service Zhengzhou City Airport Zone
By Business Wire News
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 an agreement to provide construction waste recycling services in various villages within the Zhengzhou City Airport Zone, formally known as the Zhengzhou Comprehensive Experimental Zone for Airport-based Economy. The Zone is a 160 square mile area currently undergoing development as both a modernized air, railway and highway transportation hub and an airport-based metropolitan center.
As per the agreement, signed with one of the Zone’s Administrative Offices, Yulong has commenced servicing the 757 homesteads of Xiaoli Village. For this project, the company will receive 3800 RMB, or about $600, per homestead. Half of this fee shall be remitted upon processing of the homestead’s waste and the other half upon cleaning of the homestead. Yulong expects to complete its work in the village by early next month.
Additional assignments within the Zone are likely forthcoming, said Yulong, and have total potential revenue to the company of up to $55 million over five years. This estimate is based upon the Zone’s total of 165 villages averaging about 550 homesteads each.
In addition, Yulong shall have the right to sell its processed waste within the Zone to local construction companies as recycled raw materials, a process that should generate “significant incremental revenue.”
Yulong is currently deploying two mobile recycling stations in the Zone, each with an annual processing capacity of two million metric tons, and is preparing to deploy additional stations, as necessary, to process all construction waste under the contract.
Although the contract is not exclusive, Yulong is currently the Zone’s only recycling service provider.
“This is our fourth recycling contract outside of our base in Pingdingshan within the last three months,” said chief executive officer Mr. Yulong Zhu. “We are especially excited about this agreement and its great revenue potential to our company, and believe we will retain our status as the only recycling provider within this area.”
Mr. Zhu said he expects the company to announce further assignments within the Zone “in the coming weeks.”
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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