PINGDINGSHAN, China, May 4, 2016 /PRNewswire/ -- Yulong Eco-Materials Limited (NasdaqCM: YECO), an eco-friendly building products and construction waste management company, today announced that the Department of Transportation of Henan Province (the "Department") has published the technical code governing the use of recycled construction waste materials in building roadbed in the province. Yulong has been instrumental in preparing the code with Henan Communication Science and Technology Research Institute, Ltd.
With its publication, the technical code is now the standard for the road construction industry in Henan Province, and will allow the Company to begin selling its recycled waste as roadbed material for highways, expressways and other road paving projects in Henan.
Currently the Company is working closely with two municipal agencies in Zhengzhou, the Highway Bureau and the Urban and Rural Construction Committee, to set up procedures by which road and highway builders will use recycled waste in place of sand and stone to build roadbeds within the city limit. Several companies are already in the process of adopting recycled waste for their current and new road construction projects.
Additionally, the Company is actively negotiating with several large local road and highway builders, and currently expects to announce the signing of contracts to sell its recycled waste to these builders.
Mr. Yulong Zhu, Yulong's CEO, noted, "The ability to sell our recycled construction waste for use in roadways is a significant step forward for our business. We have been recycling construction waste in the cities of Zhengzhou and Shangqiu and have currently stored over 5 million cubic meters of recycled materials. With the publication of the technical code, we estimate that we can generate at least $6 million annually for the next five years from the sale of the recycled materials.
"It is estimated that Zhengzhou alone will build over 340 kilometers of new highways and over 1,000 kilometers of new main roads, and upgrade over 1,000 kilometers of existing roads, over the next 5 years. We estimate that over 50 million cubic meters of recycled materials will be required to complete these projects, which could potentially generate over $100 million in revenue. Based on our current construction waste processing capacity, we expect to produce approximately 6 million cubic meters of recycled waste annually. As previously announced, we plan to expand our recycling capacity to keep up with the anticipated demand."
About Yulong Eco-Materials
Yulong is a vertically integrated manufacturer of eco-friendly building products and a construction waste management 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 the exclusive provider of construction waste management services for the cities of Pingdingshan and Shangqiu.
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:
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/publication-of-technical-code-allows-yulong-to-begin-the-sale-of-its-recycled-materials-for-roadbed-construction-300262700.html
SOURCE Yulong Eco-Materials Limited