NF Energy Signs Strategic Partnership Agreement with China Energy Conservation Union - Aim to complete 19 steam-heating pipeline energy saving reconstruction projects in the next three years
SHENYANG, Liaoning Province, China, April 4, 2011 /PRNewswire-Asia/ -- NF Energy Saving Corp. (Nasdaq: NFEC) ("NF Energy" or the "Company"), a leading energy saving services provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that it has signed a strategic partnership agreement with China Energy Conservation Union("CECU"), with the aim of completing 19 steam-heating pipeline energy saving reconstruction projects in the next three years.
Pursuant to the agreement, NF Energy will receive a share of the profits from the energy savings generated by these projects each year for the next five years. It is expected that four energy saving reconstruction projects for four large-scale petroleum refining facilities in Northern China will be the first projects to commence under the partnership agreement and that all four will start in 2011. These projects, which will have associated Energy Performance Contracts, will combine the advantages of NF Energy's energy saving intelligent flow-control systems technology and its operation management, along with CECU's sophisticated site consulting and end user management advantages, to provide one stop solutions for clients. The projects will have the potential to help clients generate energy savings of 10% - 20% every year.
Additionally, the websites of China's Ministry of Finance and the State Administration of Taxation officially announced Rule 110, which includes a clause for developing value-added tax, business tax, and enterprise income-tax policies to promote the energy-conservation service industry (the "Notice"). The Company expects that this Notice, which grants favorable tax policies to the industry, will benefit NF Energy in both the short and medium term.
"We are very pleased to sign this agreement with CECU to work jointly on these steam-heating pipeline energy saving reconstruction projects, They, like hydropower pipelines, are an area of strength for NF Energy," said Mr. Gang Li, Chairman and Chief Executive of the Company, "These projects are aligned with energy-saving objectives outlined in the Chinese government's 12th five-year plan. We view them as the first of many such opportunities that will add to NF Energy's growth potential and create value for our shareholders."
About China Energy Conservation Union
China Energy Conservation Union is a professional consulting company dedicated to providing public service sector energy expertise and contract energy management service platform.
About NF Energy Saving Corporation
NF Energy Saving Corporation (NASDAQ: NFEC) is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to provide energy saving services to clients. The Company's customers are mainly concentrated in the electrical generation (large-scale thermal power generation, hydroelectric power, and nuclear power), water supply, and heat supply industries. The majority of revenues are from energy efficient flow control solutions including equipment and energy efficiency project services. For more information, visit http://www.nfenergy.com
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Investor Relations Contact:
Ms. Lihua Wang, Director & CFO
Mr. Mark Collinson, Partner
NF Energy Saving Corp.
CCG Investor Relations
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SOURCE NF Energy Saving Corporation