HONG KONG, May 5, 2011 /PRNewswire-Asia/ -- Euro Tech Holdings Company Limited (NASDAQ: CLWT) today announced that the ill fated Guangxi contract worth US$3.2 Million, suffered from a serious fatal traffic accident in September 2010 is now rescheduled to be completed by the end of August 2011. The contract was resumed in December 2010 with a new project management team and a new sub-contractor. However, the company right now has to defend a legal case regarding the extra claims by families of the deaths although the company is one of the victims.
PACT Environmental Technology Co., Ltd. ("PACT"), a subsidiary of the company is venturing into the lucrative business of Ballast water treatment (BWT).
Ballast water treatment is an imminent requirement to prevent the biological unbalance caused by the estimated 12 billion tons of ballast water transported across the seas by ocean-going ships. Thousand of species and microorganisms are transported worldwide as "stowaways" in the ballast water creating unpredictable problems for the different ecosystems when ballast water tanks are emptied or refilled.
Up to 2020, the global market potential within ballast water treatment is estimated to become substantial and constitute a three-figure billion dollar amount. As the International Maritime Organization (IMO) has a requirement that by 2017, all newly built and existing oceangoing vessels to be fitted with dedicated water treatment system to treat ballast water before it is discharged at the port of call. This is to prevent cross contamination of international waters.
In view of the huge market potential for new installations and retrofits, PACT has been working on a non-chemical water treatment system concept since 8 months ago. Currently PACT is in an advanced stage of design of a full-scale BWT system and has contracted the services of a US-based professor who is an authority and experienced in BWT both from the technical and regulatory aspects. The system will be ready by the end of 2011 and there after it will undergo land-based testing before it is installed in a ship for the final seaboard testing and certification. The certification process is both costly and time-consuming and may last up to 18 months.
In order to finance this costly exercise, the management of PACT is considering to seek strategy partners such as companies in shipping industries or funding raising from keen investors.
PACT Environmental Technology Co. Ltd., ("PACT"), based in Shanghai, is a global provider of environmental solutions for industrial and municipal clients, focusing on water and wastewater treatment. PACT's capabilities cover design, manufacturing, sourcing, installation and servicing of water/wastewater treatment, water desalination plants and equipment.
Certain statements in this news release regarding the Company's expectations, estimates, present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, or expects, or words of similar import, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements indicate uncertainty and the Company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, having the Company's offices and operations situated in Hong Kong and China, doing business in China, competing with Chinese manufactured products, competing with the Company's own suppliers, dependence on vendors, and lack of long term written agreements with suppliers and customers, development of new products, entering new markets, possible downturns in business conditions, increased competition, loss of significant customers, availability of qualified personnel, negotiating definitive agreements, new marketing efforts and the timely development of resources. See the "Risk Factor" discussions in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for its fiscal year ended December 31, 2009.
SOURCE Euro Tech Holdings Company Limited