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Yulong Wins Contract to Service Zhengzhou City Airport Zone

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.

Forward-Looking Statements

This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company’s financial position and business strategy. The words or phrases “plans,” “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think,” “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.

Investor Relations Counsel:
The Equity Group Inc.
Lena Cati
Vice President
Asia IR•PR
Jimmy Caplan
Managing Director
Media Relations:
Asia IR•PR
Rick Eisenberg
Managing Director


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