BEIJING, Oct. 3, 2011 /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 it has entered into a new line of business in China, by developing equipment to perform the maintenance and repair of China's ever expanding railway system.
Wowjoint has been awarded the contract by China's Ministry of Railway to build the first ever equipment for inspection of the overhead concrete beams of the elevated pave way of China's high-speed railway. The Ministry of Railway recognized Wowjoint's maintenance and repair machine as the only authorized machine for its intended use on the high-speed railway. The Company owns numerous patents regarding the design and manufacturing of this equipment. This specialized equipment is expected to have an average sales price of approximately $1 million.
As a key member in the partnership of academic research and industrial application among academic research institutions and enterprises, Wowjoint developed this specialized equipment in connection with China Railway Engineering Consulting Group Co., Ltd., China Academy of Railway Sciences, Beijing Jiaotong University and Beijing Railway Bureau. China's Ministry of Railway specifically promoted this partnership to develop the equipment to inspect the overhead concrete beams of the elevated pave way that is used in China's high-speed railway system without occupying the rail track or disturbing the operational time of the track. The equipment is to be built to solve the existing safety issues associated with the inspection and maintenance of the overhead concrete bridges, to ensure the reliability and durability of the concrete structures of the pave way.
Wowjoint will manufacture one set of the model equipment that it will provide to the Ministry of Railway. The research will make Wowjoint the manufacturer of the world's first equipment ever used for the inspection and maintenance of overhead concrete bridge of high-speed railway. Wowjoint will participate in establishing the inspection methods, including modes and contents, and the corresponding technical and operational conditions.
"We're honored to have been chosen by the Ministry of Railway to provide this specialized equipment for the inspection and maintenance of the high-speed railways," Mr. Yabin Liu, Chief Executive Officer of Wowjoint stated. "China has built an extensive railway system and has plans within their infrastructure and stimulus plans to grow to 144,000 kilometers of railway by 2015. We believe that this new line of business could be a substantial revenue stream for Wowjoint in the near future, as well as contribute to our revenue diversification that we've been pursuing."
According to statistics, China's total high-speed railway network was over 20,000 kilometers in 2010. Presently, the total length of overhead bridges within the high-speed railway exceeds 2,000 kilometers in all trunk passenger dedicated lines. This new equipment that Wowjoint designed, with its partners on the project, will be in high demand in the near future due to the existing infrastructure.
Wowjoint expects to deliver the model equipment to the Ministry of Railway within the second quarter of 2012. Once the equipment is delivered and tested by the Ministry of Railway, Wowjoint can pursue the sale of the equipment to customers and it can also provide inspection services acting as an inspection company to generate a new revenue stream from the operation of the equipment. The Company believes that this line of business will have a significant contribution to its 2013 results.
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.
For additional information contact:
Aubrye Foote, Vice President Investor Relations
SOURCE Wowjoint Holdings Limited