PINGDINGSHAN, China, June 1, 2016 /PRNewswire/ -- Yulong Eco-Materials Limited (NasdaqCM: YECO), an eco-friendly building products and construction waste management company, today announced that it received four new assignments to recycle construction waste in four villages in Zhengdong New District of Zhengzhou City, the provincial capital of Henan Province.
As the original agreement signed with the district's Municipal Construction Office in 2015 intends, Yulong is to provide construction waste recycling service for all the District's 28 administrative villages.
Yulong expects to recycle approximately 1.55 million cubic meters of construction waste with the new assignments, and generate approximately $3 million in revenue, in 6 months. To service the assignments, the Company is utilizing 3 mobile recycling stations, each with designed annual processing capacity of two million metric tons.
Once recycled, the Company estimates to generate approximately $3 million of additional revenue from the sale of the recycled aggregates to local construction companies. Of note, the recently published new technical code by the provincial authority, which standardizes the use of recycled construction waste for roadbed construction, gives Yulong a great opportunity to sell its recycled aggregates as roadbed materials for highways, expressways and other high quality road paving projects in Henan.
The district's Municipal Construction Office expects all its 28 villages to generate more than 15 million cubic meters of construction waste. If all 28 villages are assigned to and serviced by Yulong, this project can potentially generate over $35 million in revenue from waste recycling, plus additional revenue from the sale of the recycled aggregate. Thus far, the Company has recycled approximately 1.1 million metric tons of construction waste from three villages where the recycling services have been completed.
Yulong Zhu, the Company's CEO noted, "When we signed the agreement with the district's Municipal Construction Office in 2015, our goal was to receive assignments to provide recycling services to six of the district's villages before the end of fiscal 2016. We have now obtained assignments to recycle construction waste from seven villages, one more than our original plan, and we have already completed our recycling work in three of these villages. We will continue to offer local government very cost effective and environmental friendly solutions to manage and reduce construction waste that is taking up land resources, polluting underground water and affecting quality of life."
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.
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SOURCE Yulong Eco-Materials Limited