Publication of Technical Code Allows Yulong to Begin the Sale of its Recycled Materials for Roadbed Construction

PINGDINGSHAN, China, May 4, 2016 /PRNewswire/ -- Yulong Eco-Materials Limited (NasdaqCM: YECO), an eco-friendly building products and construction waste management company, today announced that the Department of Transportation of Henan Province (the "Department") has published the technical code governing the use of recycled construction waste materials in building roadbed in the province. Yulong has been instrumental in preparing the code with Henan Communication Science and Technology Research Institute, Ltd.

With its publication, the technical code is now the standard for the road construction industry in Henan Province, and will allow the Company to begin selling its recycled waste as roadbed material for highways, expressways and other road paving projects in Henan.

Currently the Company is working closely with two municipal agencies in Zhengzhou, the Highway Bureau and the Urban and Rural Construction Committee, to set up procedures by which road and highway builders will use recycled waste in place of sand and stone to build roadbeds within the city limit. Several companies are already in the process of adopting recycled waste for their current and new road construction projects.

Additionally, the Company is actively negotiating with several large local road and highway builders, and currently expects to announce the signing of contracts to sell its recycled waste to these builders.

Mr. Yulong Zhu, Yulong's CEO, noted, "The ability to sell our recycled construction waste for use in roadways is a significant step forward for our business. We have been recycling construction waste in the cities of Zhengzhou and Shangqiu and have currently stored over 5 million cubic meters of recycled materials. With the publication of the technical code, we estimate that we can generate at least $6 million annually for the next five years from the sale of the recycled materials. 

"It is estimated that Zhengzhou alone will build over 340 kilometers of new highways and over 1,000 kilometers of new main roads, and upgrade over 1,000 kilometers of existing roads, over the next 5 years. We estimate that over 50 million cubic meters of recycled materials will be required to complete these projects, which could potentially generate over $100 million in revenue. Based on our current construction waste processing capacity, we expect to produce approximately 6 million cubic meters of recycled waste annually. As previously announced, we plan to expand our recycling capacity to keep up with the anticipated demand." 

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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Contact:

Investor Relations Counsel:

The Equity Group Inc.
Lena Cati
Vice President
212-836-9611 / [email protected]   
www.theequitygroup.com 

SOURCE Yulong Eco-Materials Limited