SHANGHAI, April 8, 2011 /PRNewswire-Asia-FirstCall/ -- China Energy Recovery Inc. (CGYV.PK) ("CER"), an international leader in the design, fabrication and installation of waste heat recovery systems, announced today that a current customer, Wuxi Greenapple Chemical Industry Co. Ltd., awarded the company an additional $2.94 million (US) contract to design, manufacture and install a waste heat recovery system for a new sulfuric acid plant located in Zhenjiang, Jiangsu Province.
The new system has a rated capability to produce 38 tons of steam-per-hour at 186 C and 1.0 MPa and is scheduled for delivery in the third quarter of 2011.
Separately, the company announced that it exercised an option in March 2011 to purchase an office building that it currently occupies in Shanghai. CER has occupied the approximately 28,000 square-foot building, which houses its design and engineering staff, since March of 2009. The purchase option is valued at approximately $7.4 million (US) and includes the real estate and all ownership interests and related land-use rights. The company filed a Form 8-K report on the matter with the U.S. Securities and Exchange Commission on April 7, 2011.
Also, earlier in the first quarter of this year, CER achieved certification of its products, services and quality systems from ASME, a global mechanical engineering standards organization, formerly known as the American Society of Mechanical Engineers. CER's certification was issued per ASME's Boiler and Pressure Vessel Code.
"We appreciate Wuxi Greenapple's continued confidence in our engineering and system installation capabilities, which led to this new contract award," CER Chairman and Chief Executive Officer Qinghuan Wu said.
Wuxi Greenapple previously contracted with CER to deliver a $10 million (US) waste heat recovery system in the second quarter of 2011 for a separate sulfuric acid plant being constructed in the same complex.
"As we have said in the past, fully 25% of CER's new orders come from former and current customers," Mr. Wu said. "Clearly, CER is benefitting from the good will and regard of industrial manufacturers operating in key industry sectors in China and the rest of the world."
To date, the total value of CER's announcements for contract deliveries in fiscal 2011 and 2012 exceeds $128 million (US).
What is Waste Heat Energy Recovery?
Industrial facilities release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering as much as two-thirds of that wasted energy and converting it into usable heat energy or electricity, dramatically lowering energy costs. Energy recovery systems are also capable of lowering heat pollution and capturing harmful pollutants that would otherwise be released into the environment. It is estimated that if energy currently wasted by all the U.S. industrial facilities could be recovered, it could produce power equivalent to 20% of U.S. electricity generation capacity without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.
About China Energy Recovery, Inc.
CER is an international engineering and manufacturing company that specializes in the design, construction and installation of waste heat energy recovery systems that captures and converts industrial waste energy produced by heavy industrial processes such as petroleum and chemicals refining, paper manufacturing and refining into low-cost electrical power, which enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint and generate salable emissions credits. The company's primary focus is the Chinese market; however, CER's systems are operating in heavy industrial plants located in Egypt, Korea, Vietnam and Malaysia. CER is building China's first state-of-the-art, energy recovery system research and fabrication facility, which will allow CER to meet increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp. Information on CER's website does not comprise a part of this press release.
Forward-Looking Statement Disclaimer
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the Securities and Exchange Commission.
SOURCE China Energy Recovery Inc.