BEIJING, June 23 /PRNewswire-Asia-FirstCall/ -- LianDi
Clean Technology Inc. (OTC Bulletin Board: LNDT), ("LianDi" or the
"Company"), a leading provider of clean technology, downstream flow
equipment, engineering services and software to China's leading petroleum and petrochemical
companies, today announced that it intends to purchase a 16.5-acre
land parcel in the Tianjin Port Industry Area for approximately
$5.9 million. The Company intends to
use the land to construct a new manufacturing facility for its
state-of-the-art, totally enclosed delayed coking unheading units.
The acquisition is expected to close within the next 60 days.
Upon the closing of the land acquisition, a three-month site
preparation project will begin as will LianDi's design of its
manufacturing facility. The completion of the new facility will be
accomplished in two major phases: Phase I includes the installation
of major utility infrastructure, which includes water, gas and
electricity supply and Phase II includes the construction of the
manufacturing facility. Phase I is expected to be completed by the
end of 2010. Production is expected to begin by the third quarter
calendar year 2011, with 5 initial shipments of unheading units
planned for the first full year of production, which is expected to
contribute at least $10 million in
revenues for the Company's fiscal year ending March 31, 2012.
"Acquisition of this land strategically located in China's Tianjin Port Industry Area, a special
economic development zone to foster growth in northern China, is a significant step forward in our
development of a new manufacturing facility to produce our
state-of-the-art, totally enclosed delayed coking unheading units
for the growing oil refining industry," stated Mr. Jianzhong Zuo, chairman, chief executive officer
and president of the Company. "With the importation of oil growing
rapidly in China, so is the need
for cost-effective, safe and economically advantageous technologies
for the oil refining industry. As China diversifies its crude oil import sources
and expands oil production domestically, refiners will require
optimal solutions for refining inferior domestic and imported crude
oil. We look forward to participating in this opportunity by
delivering to our valued customers, including Sinochem Quanzhou and
others, innovative solutions such as our unheading units for the
delayed coking process, the first of their kind in China."
LianDi is engaged in modernizing delayed coking in China's oil refining industry and plans to
install clean and safe enclosed unheading units in China in the first quarter of 2011. Delayed
coking is a thermal process that breaks heavy crude oil into
lighter, more valuable fluids which are captured, while a solid
coal-like byproduct called "coke" remains in the drum. Unheading
units are used in delayed coking to "unhead" or open the coke drum
for the removal of the residual coke. Due to the extreme
temperatures required in the process, unheading can be one of the
most hazardous refinery operations. Despite the related hazards,
delayed coking is the preferred solution for refining inferior
domestic and imported crude oil.
LianDi, in conjunction with DeltaValve, has developed an
affordable, environmentally friendly, safe and maintenance free
enclosed coke-drum unheading system for the Chinese marketplace.
LianDi's clean-technology solution is fully automated and provides
significant advantages over other available unheading equipment
because it eliminates exposure to workers and the environment.
Installation of LianDi's enclosed unheading units can also generate
significant economic benefits to oil refiners, both in terms of
cost savings through higher operating efficiencies as well as tax
incentives for energy saving, environmentally friendly
technologies.
The projected market for coking units is expected to grow to
$1.0 billion over the next ten years
driven in large part by China's
growing consumption of oil and by supportive governmental policies.
China's net oil imports reached
4.1M bbl/d in 2009, making it the second largest net oil importer
in the world. As of December 2009,
crude oil refining capacity in China reached 477 million tons. China's National Energy Administration's (NEA)
goal is to raise refining capacity by 50 percent in the next 5
years and expected to reach 750 million tons, or 15 million barrels
per day, by 2015.
Tianjin Port Industry Area is one of nine major function areas
of Binhai New Area, a major special
economic development zone within the jurisdiction of Tianjin municipality in China. It has primary responsibility to build
Binhai New Area into an
international shipping center as well as an important logistics hub
of northern China. Binhai New Area, which covers an area of more
than 770 square miles and has a population of two million people,
is an important and growing base of petroleum exploration and
processing. Tianjin Port, one of the world's top 10 deepwater
ports, is an important sea hub for middle and western China. Binhai New
Area is also well served by a well-established network of
railways, highways and air transportation.
About LianDi Clean Technology Inc.
LianDi was established in July
2004 to serve the largest Chinese petroleum and
petrochemical companies. Through its four operating subsidiaries,
Hua Shen Trading (International) Ltd., Petrochemical Engineering
Ltd., Bright Flow Control Ltd. and Beijing JianXin Petrochemical
Engineering Ltd., the Company distributes a wide range of
customized valves and equipment and provides associated value-added
technical and integration service. The Company also develops and
markets proprietary optimization software for the polymerization
process. In addition, LianDi is focused on the large, rapidly
growing, clean technology market for oil refineries, projected to
reach over $1 billion in the next 10
years. This market is expected to benefit from favorable Chinese
government policies, including tax benefits and other
incentives.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking
statements" relating to the business of LianDi and its subsidiary
companies. All statements, other than statements of historical fact
included herein are "forward-looking statements" including
statements regarding: the general ability of the Company to achieve
its commercial objectives, including the ability of the Company to
sustain growth; the business strategy, plans and objectives of the
Company and its subsidiaries; and any other statements of
non-historical information. These forward-looking statements are
often identified by the use of forward-looking terminology such as
"believes," "expects" or similar expressions, involve known and
unknown risks and uncertainties. The Company's actual results could
differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website (
http://www.sec.gov )
For more information, please contact:
Company:
Joe Levinson, VP of Corporate Communications
Tel: +1-646-884-0829
Email: joe.levinson@china-liandi.com
Investor Relations:
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
SOURCE LianDi Clean Technology Inc.