Sancon Expects to Benefit From Chinese Government Environmental Initiatives
Sancon Resources Recovery, Inc. (OTCBB: SRRY), a fast-growing industrial and commercial waste management and recycling company, with operations in both China and Australia, expects to benefit greatly from the environmental initiatives and policies set out by the Chinese government.
Ministry of Commerce holds symposium on tax benefit policy for waste recycling
The Ministry of Commerce held a symposium on tax benefit policy on the waste recycling industry on April 10th, 2008, as per the Proposal of Adjusting and Enhancing Tax Benefits for Waste Recycling Industry, issued by the Ministry of Finance and the State Administration of Taxation. China Association of Resources Recovery and Recycling, of which Sancon is a member, participated in the discussion. The state council has urged various government departments to quicken the process of introducing tax benefits to businesses in the waste recycling and resources recovery industry. Sancon expects it will positively impact its financial results.
China to further develop its recycling industry
The State Development and Reform Commission promotes the recycling industry with a four-pronged solution ranging from energy saving and clean production to integrated use of resources and developing an environmental protection industry. The Commission will work with other departments concerned to issue a guideline to accelerate the development of the recycling economy. The concept of recycling economy is included in the 11th Five-year Plan. Special planning for energy saving, water saving and the integrated use of resources will be sped up.
In addition, policies will be drafted and mechanisms will be proposed to promote the development of the recycling economy. Policies will give priority to the recycling and reuse of scrap home appliances, electronic products, waste tires, waste paper and waste packaging, as well as the re-production of machinery and electric products, recycled aluminum, and transformation of waste into resources.
Environmental industry facing significant opportunities
Due to the serious environment pollution problems faced in China, the 11th Five-year plan emphasis energy saving, emission reduction and environmental protection at the highest level ever. At the end of the 11th Five-year plan, the annual production of the environmental industry will exceed 1.1 trillion RMB, of which environmental equipment spending is 120 billion RMB, environmental services is 100 billion RMB, resources recovery is 660 billion RMB, cleaning products spending is 250 billion RMB.
In the past 30 years of development, environmental production value in China increased from 0.5% of GDP to the current 1.6%. China will expedite the demonstration and promotion of technologies for energy saving and emission reduction; actively promote the development of the environmental services industry; and also intensify the financial services for the environmental industry; and tax benefit policies for the environmental industry. During the 11th Five-year period, investment for environmental protection will reach 1.4 trillion RMB. Central government financing is investing in environmental industry at annual compound growth rate of 18%. The Chinese government set out policies supporting 4 key areas: developing a resources recovery and recycling economy; pollution reduction and ecological protection; environment testing instruments; environmental services and the development of the environmental industry.
Sancon is uniquely positioned to benefit from these initiatives as an early mover in the industry and one of the few foreign companies being awarded a waste management license in China. Sancon has for the past years developed one of the largest collection and recovery networks in China for commercial waste and expects to expand into other areas of environmental services.
About Sancon Resources Recovery, Inc.
Sancon Resources Recovery, Inc. (OTC BB: SRRY.OB – News) is an environmental service and waste management company that operates recycling facilities in China and Australia. Sancon specializes in the collection and recovery of industrial and commercial solid wastes such as plastic, paper, cardboard, and glass. The recycled materials are re-used by Sancon’s manufacturing customers in China to make a wide variety of new products including outdoor furniture, construction materials, building materials, road surface, and various new products. Sancon’s China operation is licensed by the Chinese government for waste management services, and is certified with ISO 9001 and ISO14001 standards. For more information please visit: www.sanconinc.com.
Forward-looking statements:
The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company’s operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company’s dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.