ZhongDe Waste Technology AG announces signing of Lianshui BOO project
- 200 tons/day municipal waste incineration plant
- Extended concession period compared to non-binding letters of intent of Jian'ou BOT project
- Agreements for 2 additional BOT projects in negotiation
- Strategy to expand the value chain into operating of waste incineration plants on track
ZhongDe Waste Technology AG [Ticker ZEF] announced today that ZhongDe Group ("ZhongDe") has signed binding agreements for a BOO project ("Build - Operate -Own") in Lianshui Jiangsu, with a daily waste disposal capacity of 200 tons in its first phase and another 200 tons in the second phase. With this contract ZhongDe replaces the initially planned Jian'ou project due to negotiated better terms: compared with the original Jian'ou BOT project, the concession period has been extended from 20 years to BOO. ZhongDe is thereby implementing its key strategy to expand the value chain into the operation of waste incineration plants and thus to generate recurring revenues and to strengthen its market position in the segment of municipal waste disposal.
Lianshui is a city with approximately one million inhabitants located in the north of the Jiangsu province. The waste disposal fee, which amounts to RMB 70 (€ 6.60 at the current rate of exchange) per ton will be paid on a monthly basis directly by the local municipalities in charge and adjusted to the inflation index on an annual basis. The estimated total investment cost amounts to approximately € 3.71 million for the first phase.
The major portion of the proceeds generated by the Initial Public Offering in July 2007 in the Prime Standard of the Frankfurt Stock Exchange will be used to operate waste incinerators for and with municipalities in conjunction with the production and marketing of by-products such as steam, hot water, bricks and electricity. Prior to the Initial Public Offering ZhongDe had signed six non-binding letters of intent for the operation of BOT projects. Binding agreements for a BOT project in Xihua Henan and a BOO project in Feicheng Shandong were signed in August 2007. Agreements for the Xinjiang BOT project were signed in April 2008. Further negotiations for two additional BOT projects in Guilin and Wuxiang are underway and on schedule.
ZhongDe Waste Technology AG
ZhongDe Group designs, manufactures and installs pyrolytic, grate and rotary kiln waste incinerators for the disposal of solid medical, municipal and industrial (including hazardous) waste. Since 1996, ZhongDe Group has installed approximately 180 waste incinerators in about 13 provinces, and more than 120 waste incinerators in the last three financial years alone. Its waste incinerators are principally constructed for operators of medical disposal centres in the hospital and healthcare industry, as well as for small and midsized Chinese cities in developed areas of the People's Republic of China. ZhongDe Group is one of the leading suppliers of small and midsized solid waste incinerators in China, supplying state-of-the-art products. The trading of the shares (German Securities Identification Number ZDWT01, ISIN DE000ZDWT018 and ticker symbol ZEF) commenced on the Prime Standard segment of the Frankfurt Stock Exchange on July 6, 2007.