China Recycling Energy Corporation Transfers BPRT and WGPG Systems to Datong Tianjian for US$40.3 Million
XI'AN, China, June 4, 2015 /PRNewswire/ -- China Recycling Energy Corp. (NASDAQ: CREG) ("CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that Xi'an TCH Energy Technology Co., Ltd.("Xi'an TCH"), its wholly owned subsidiary, recently entered into a Recycling Economy System Repurchase Agreement ("Repurchase Agreement") with Datong Coal Tianjian Iron & Steel Co., Ltd. ("Datong Tianjian"). Under the repurchase agreement, Datong Tianjian will repurchase the two Blast Furnace Power Recovery Turbine ("BPRT") systems and one newly completed Waste Gas Power Generation ("WGPG") system from Xi'an TCH at a total repurchase price of approximately US$40.3 million (RMB250.0 million).
The two BPRT systems were completed in June 2013, which have been leased to Shanxi Datong Coal Group Steel Co., Ltd. ("Datong") that was renamed as Datong Coal Tianjian Iron & Steel Co., Ltd. after it was restructured, and the WGPG system was completed in May 2015. Due to the change of its strategic plan and business restructuring, Datong recently notified Xi'an TCH that it requested the repurchase of the BPRT and WGPG systems (the "Systems") from Xi'an TCH. After negotiations, the Company agreed to an early transfer of the systems for a price of about US$40.3 million, including about US$16.1 million (RMB100.0 million) for the two BPRT systems and about US$24.2 million (RMB150.0 million) for the WGPG system.
Mr. Guohua Ku, Chairman and CEO of CREG commented, "The WGPG system is one of two projects we said would be completed in the second quarter of 2015 and we are pleased to have completed it as scheduled. The second project remains on track for completion before June 30. Taking into consideration the time value of money and the opportunity to deploy the cash to fund some of the numerous projects in our pipeline, we believe that the early termination fee more than compensates the Company for the loss of future income. The market demand for energy recycling remains strong in China given highly supportive government policies. We continue to invest in our R&D efforts to explore new solutions to be used in more energy intensive industries. The additional cash from the early transfer will further strengthen our financial position and spur a new round of business development."
About China Recycling Energy Corp.
China Recycling Energy Corp. (NASDAQ: CREG) ("CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://creg-cn.investorroom.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Mr. Jackie Shi, Chief Financial Officer
China Recycling Energy Corp.
Tel: +86- 139 9287 0723
Email: [email protected] / [email protected]
Christensen
Ms. Xiaoyan Su (China)
Vice President
Tel: +86-10-5900-3429
Email: [email protected]
Mr. Christian Arnell (China)
Vice President
Phone: +86-10-5900-1548
E-mail: [email protected]
SOURCE China Recycling Energy Corp.
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