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China Industrial Waste Management Provides Update on Dongtai Organic Waste Treatment Project

Posted on: Wednesday, 4 November 2009, 08:00 CST

DALIAN, China, Nov. 4 /PRNewswire-Asia/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT) ("China Industrial Waste Management" or the "Company"), a leading environmental services and solutions provider in China, today announced construction and regulatory progress related to the Build-Operate-Transfer ("BOT") municipal sludge treatment and disposal facility in Dalian, China (the "Project") that is being developed by the Company's subsidiary Dongtai Organic Waste Treatment Co. Ltd. ("Dongtai Organic").

The Company announced that six of the Project's 12 fermentation tanks are now complete and have passed examination by the Dalian Municipal Urban Construction Administration Engineering Technology Agency and that a biogas pipe network has been built. Upon launch, the Project's 12 tanks will be able to process 600 tons of municipal sludge per day and generate 25,000 to 30,000 cubic meters of biogas per day. The biogas generated by these tanks will be distributed through the network to end-users in Dalian as a supplement to the gas currently being supplied by the municipality. Dongtai Organic can yield revenues from the sale of this biogas.

Dongtai Organic is developing the first sludge treatment plant in Dalian designed and built in the mode of a BOT project, with a 20-year operating term. The project was commenced in April 2007 and is expected to be operational in early 2010. As required by the BOT contract, the government will supply raw material (municipal sludge), and pay processing fees to Dongtai Organic. China Industrial Waste Management has a 49% ownership interest in Dongtai Organic via its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai"). The total cost for the Project is approximately RMB 129 million ($18 million), of which Dongtai's share is RMB 63 million ($9 million).

"The development of the Dongtai Organic Waste Treatment Project is an important step in China Industrial Waste Management's strategy of expanding into municipal sewage and sludge treatment BOT projects," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "We believe that a well-operated BOT project will gain attention and social recognition from the local government and business community, which may, in turn, provide additional business opportunities for similar projects in China. Our returns from BOT projects are derived from fees paid by the government and sales of biogas. Such BOT projects are able to generate a steady and recurring source of income for us over a sustained period of time of between 20 and 25 years."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the launch and successful operation of the Dongtai Organic Waste Treatment Project, the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward- looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

SOURCE China Industrial Waste Management, Inc.

Source: PR Newswire

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