Wowjoint Holdings Limited Announces New International Contract & Provides Business Update Denotes Expansion into new market
BEIJING, April 18, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it entered an agreement for Movable Scaffolding Systems in Malaysia. Wowjoint is also providing a business update on recent developments.
The Company entered an agreement to provide two Movable Scaffolding Systems ("MSS") for a project in Malaysia. The value of the agreement is approximately $2.6 million. Production began in April and delivery is expected to occur in September 2012. This is a new type of equipment for Wowjoint and it further expands its product range in construction machinery from providing not only machines for the precast arena, but now also non-prefabricated girder/beam bridge construction. The MSS is equipment that will initially be marketed for the Southeast Asian markets and we anticipate the demand for the equipment to be significant once the initial machine is deployed.
"We are excited to announce this agreement in Malaysia," stated Yabin Liu, Chief Executive Officer of Wowjoint Holdings Limited. "This demonstrates our focus on expansion outside of China and providing a larger revenue stream for the Company. We are proud of our R&D team for their constant drive to develop new products and we believe this new MSS machine could have a substantial worldwide demand."
Wowjoint recently added new partners to enhance its sales force outreach in regions around the world, specifically in areas of Europe, South America and Southeast Asia. One of these partners will jointly market our handling machines, the Mobilift and Marine Hoist, in Europe and the Mediterranean regions. The Company has begun pursuing joint bids with this partner on port construction projects and hopes to enter the new field of port machinery soon.
The Company has an organized and dedicated team focusing on R&D and project development. In addition to developing machines for the bridge construction industry, this team has been developing technology and products relating to the renewable energy sector including items such as a wind turbine hoist, and other large lifting equipment that can be utilized by [wind turbine, solar power and biomass power generation device manufacturers. Wowjoint is working on a joint venture in Europe to develop projects that can take advantage of the current preferential policies provided to the renewable energy industry in various European countries. The Company believes it can utilize its Chinese manufacturing advantages and its high-quality design and production capability to invest in this industry development both in China and in Europe, thereby ultimately having a large entry into the green energy industry.
In March 2012, Wowjoint's CEO led a sales and marketing team to participate in a conference and exhibition in Brazil. During that time, the Company met with a large number of companies in Brazil and Argentina. The trip provided the Company with a greater understanding of the Latin American markets, but also provided an introduction to Wowjoint and began discussions on future projects in the area.
Mr. Liu continued, "With the various new markets that Wowjoint is pursuing, we believe that we have a significant opportunity for growth in these vertical markets. Based on our knowledge of our industry, we believe that worldwide demand for machines such as the MSS, and the renewable energy sector machines could approach $100 million annually, thereby providing Wowjoint with potential customers within these segments. We have a strong team, including R&D, sales and marketing, to capitalize on these markets as well as other vertical markets and locations that we continue to pursue. With the addition of our R&D and manufacturing facilities that we announced in February 2012, we are excited about our future prospects."
About Wowjoint Holdings Limited
Wowjoint is a leading provider of customized heavy duty lifting and carrying machinery used in large scale infrastructure projects such as railway, highway and bridge construction. Wowjoint's main product lines include launching gantries, tyre trolleys, special carriers and marine hoists. The Company's innovative design capabilities have resulted in patent grants and proprietary products. Wowjoint is well positioned to benefit directly from China's rapid infrastructure development by leveraging its extensive operational experience and long-term relationships with established blue chip customers. Information on Wowjoint's products and other relevant information are available on its website at http://www.wowjoint.com.
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Wowjoint undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this communication. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. All forward-looking statements are qualified in their entirety by this cautionary statement. All subsequent written and oral forward-looking statements concerning Wowjoint or other matters and attributable to Wowjoint or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Wowjoint does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release.
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SOURCE Wowjoint Holdings Limited