Jan 27 2010
China Advanced Construction Materials Group, Inc. ( CADC), ("China ACM" or the "Company") a leading provider of ready-mix concrete in China, today announced that the Company has signed a definitive contract to provide its ready-mix concrete service to the high-speed railway project between Xi'an and Ankang, the largest city in southern Shanxi Province.
China ACM will provide technical counseling for the production of 270,000 cubic meters of ready-mix concrete. Equipment for the portable mixers has arrived on site and production will commence in February 2010. Duration of the project is estimated to be 20 months. Revenues for this contract are an estimated $3 million with an estimated $800,000 net income.
Among the 10 government-certified green concrete producers in China, only China ACM is gaining access to high-speed railway projects. The Company's proprietary technologies and industrial byproduct recycling lowers cement consumption while providing high-quality, ready-mix concrete exceeding the industry standard for durability with greater salt-water resistance for environmentally friendly infrastructure materials. The Company is currently involved in 11 on-going high-speed railway projects throughout the country including the highly anticipated high- speed railway from Beijing to Shanghai.
Mr. Xianfu Han, Chairman and Chief Executive Officer of China ACM, commented, "We believe the high-speed railway expansion, which enables the Chinese government's plan to build out infrastructure in the interior of China, represents a $15 billion addressable market for concrete mixing services alone. 'Green' concrete products like ours will have sustainable growth, especially for government-sponsored projects, due to the government's initiative and support to grow a low-carbon economy. Our track record in high-speed rail in many key locations and the signature architectures we have completed in Beijing, provide endorsements to help China ACM win more contracts in the Chinese high-speed rail market."
The Company also announced that the preliminary unaudited revenues for the second quarter of fiscal year 2010, which ended on December 31, 2009, approximated $26 million, a 140% increase compared with the $10.8 million in the same quarter last year.
Source: http://www.china-acm.com/