HONG KONG, Oct. 18 /PRNewswire-Asia/ -- Euro Tech Holdings Company Limited (Nasdaq : CLWT ) today announced that due to a recent fatal traffic accident, the Guangxi contract of approximately US$3.2 million awarded early in this year to Shanghai Euro Tech Environmental Engineering Ltd. ("Shanghai Euro Tech", a wholly owned subsidiary of Euro Tech), has now been suspended. The contract covers design, supply, installation and commissioning of an (5,000 cubic meters per day) industrial wastewater treatment system for a petrochemical industrial park. It will only be resumed after new project management teams from the customer, Shanghai Euro Tech and its sub contractor are organized in November 2010.
The estimated completion date of this contract will be delayed to the second quarter of 2011. There may be little or no contribution generated from this contract in this year to offset the drop of trading third party products business from foreign suppliers, and this subsequently will give negative impact on the year-end result of 2010.
In view of the continuous drop of trading third party products business, the management has decided to cut or re-allocate more of its resources to the sales and marketing of its own products manufactured by Euro Tech and Pact. As a result, some non-profitable shops and offices have been closed plus some personnel have been either transferred to its factory or engineering company or made redundant, and this streamlining task will continue anytime if necessary.
Despite the unfortunate traffic accident and its setback, the management is very positive about the prospect of its environmental engineering activities, and its own made products in coming years. As energy conservation and environmental protection is still one of the key industries that will gain tremendous financial injection from Beijing in the new 12th five-year (2011-2015) plan.
Pact Environmental Technology Co. Ltd., ("Pact"), based in Shanghai, is a global provider of environmental solutions for industrial and municipal clients, focusing on water and wastewater treatment. Pact's capabilities cover design, manufacturing, sourcing, installation and servicing of water/wastewater treatment, water desalination plants and equipment.
Certain statements in this news release regarding the Company's expectations, estimates, present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, or expects, or words of similar import, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements indicate uncertainty and the Company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, having the Company's offices and operations situated in Hong Kong and China, doing business in China, competing with Chinese manufactured products, competing with the Company's own suppliers, dependence on vendors, and lack of long term written agreements with suppliers and customers, development of new products, entering new markets, possible downturns in business conditions, increased competition, loss of significant customers, availability of qualified personnel, negotiating definitive agreements, new marketing efforts and the timely development of resources. See the "Risk Factor" discussions in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for its fiscal year ended December 31, 2009.
Pact's Website: http://www.pactchina.com Pact Mfg.'s Website: http://www.pact-mfg.com CONTACT: Euro Tech Holdings Company Limited, Hong Kong T.C. Leung, Chairman and CEO, or Jerry Wong, CFO Tel: +852-2814-0311 Fax: +852-2873-4887 Website: http://www.euro-tech.com
SOURCE Euro Tech Holdings Company Limited