Tri-Tech Holding Wins $2.8M Chengdu Water Works Equipment Service Contract
BEIJING, Jan. 9, 2013 /PRNewswire/ -- Tri-Tech Holding Inc. (Nasdaq: TRIT), which provides turn-key water resources management, water and wastewater treatment, industrial safety and pollution control solutions, announced today the company won an equipment procurement and servicing contract for the phase 1 project of Chengdu No. 7 Water Works under construction in Sichuan Province. The contract value totaled $2.8 million (approximately RMB17.6 million).
According to the contract, Tri-Tech will be responsible for design, procurement, installation, operation troubleshooting and maintenance of all automated control equipment and instruments for two water intakes, source water pipes, treated water pipes and operation of water purification facilities for the phase 1 of Chengdu No. 7 Water Works project. Tri-Tech expects the project will be completed by the end of April 2013.
With a total investment of RMB370 million by Chengdu Municipal Waterworks Co. Ltd., the project construction is expected to be completed by the end of 2013. Phase 1 will have pre-treatment capacity of 500,000 tons per day, and the full extension capacity will be 1 million tons per day. The water works will be the largest one in the City of Chengdu after its completion and will ease pressure on the city's residential water supply.
Mr. Gavin Cheng, CEO of Tri-Tech Holding commented on the contract, "We are pleased that Tri-Tech secured this new water treatment plant contract by strong cooperation between our sales and project teams. Like our Ordos project, this Chengdu Water Works is a large-scale water plant project that will provide us extensive experience in construction management of water treatment plants. In connection with our strategic business realignment, we evaluated the Chengdu project and chose to bid only for the equipment procurement and service portion of the project, rather than the complete water plant construction which we expect will tie up a significant amount of capital over a relatively long construction period. We believe execution of the equipment service contract will not harm our cash flow; to the contrary, we expect our cash flow will benefit from the short four-month project cycle. We are going to continue exploring such types of municipal water project, which have favorable cash payment cycles. As we leverage our expertise in these kinds of projects, we are also seeking opportunities to partner with well-established Chinese water businesses to develop the domestic and international markets."
About Tri-Tech Holding Inc.
Tri-Tech is an innovative provider of consulting, engineering, procurement, construction and technical services. The Company supports government, state owned entities and commercial clients by providing efficiency oriented solutions focused on treatment of water and waste water, management of water resources and water-efficient irrigation, as well as industrial emission and safety controls. With 39 software copyrights, 11 product patents, and proximately 430 employees in China, the U.S. and India, Tri-Tech's capabilities span the cycle of innovation. Please visit www.tri-tech.cn for more information.
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This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include references to statements concerning plans, objectives, goals, strategies, future events such as project payments, results of marketing efforts or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE Tri-Tech Holding Inc.