Yulong Eco-Materials Limited, an eco-friendly building products and construction waste management company, today announced that it has received two new assignments to provide construction waste recycling services in two additional villages within the Zhengzhou City Airport Zone, formally known as the Zhengzhou Comprehensive Experimental Zone for Airport-based Economy. The Zone is a 160 square mile area currently undergoing development as both a modernized air, railway and highway transportation hub and an airport-based metropolitan center.
Yulong has already commenced servicing over 1000 demolished homesteads of both the villages of Daliuhe and Longgou. The Company expects to complete recycling of waste in both villages within 6-months and is expected to generate total revenue of over $600,000.
To service these projects, Yulong is using several of its mobile recycling stations deployed in the area from other completed jobsites, each with an annual processing capacity of two million metric tons, while additional stations may be deployed as more assignments are received.
These assignments are pursuant to a master agreement Yulong signed with one of the Zone’s Administrative Offices in September 2015 to provide construction waste recycling services in various villages within the Zone. There are 165 villages, averaging about 550 homesteads each, within the Zone.
To date, Yulong has received three assignments to recycle construction waste in the Zone and three more in Zheng Dong New District of Zhengzhou City. The Company has already completed three of these assignments within a period of four months. Revenue from all six assignments in fiscal 2016 would add up to approximately $3.8 million, if all projects are completed on time. For fiscal 2016, Yulong expects to generate approximately $7 million in total revenue from its waste management business, which also includes projects in the cities of Pingdingshan and Shangqiu.
Yulong Zhu, the Company’s Chief Executive Officer, noted, “We continue to make great progress in our construction waste management operations in Zhengzhou City. We have completed three of our assignments ahead of schedule, and have sufficient available recycling capacity to handle these two new assignments quickly, further reinforcing our belief that we will retain our status as the only construction waste management services provider within the Zone.”
Mr. Zhu concluded, “We expect to receive new assignments to service additional villages in both the Zone and Zheng Dong New District in the coming months. We believe that these two areas have the potential to generate for the Company up to $55 million over a period of five years (the Zone), and $35 million over a period of four years (Zheng Dong New District), from the recycling of construction waste and also a significant amount of incremental revenue from the sale of recycled construction waste as raw material to local construction companies. Our business plan calls for the purchase of several new mobile recycling stations, and we are confident that the market for construction waste management services, especially in Zhengzhou City, will grow fast.”