BEIJING, Nov. 23, 2010 /PRNewswire-Asia-FirstCall/ --
LianDi Clean Technology Inc. (OTC Bulletin Board: LNDT), ("LianDi"
or the "Company"), a provider of clean technology, downstream flow
equipment, engineering services and software to China's leading petroleum and petrochemical
companies, today announced it has formally signed a 2-year
exclusive distribution agreement with System Kikou Co., Ltd
("System Kikou"), a leading automated oil sludge treatment company
based in Tokyo, Japan. Mr.
Jianzhong Zuo and Mr. Hitoshi Minamiguchi, Chairman and CEO of LianDi
and System Kikou, respectively, were present in Beijing to sign the landmark agreement.
"We could not have chosen a more ideal partner in China," began Mr. Hitoshi Minamiguchi, Chairman and Chief
Executive Officer of System Kikou. "We are excited about the
opportunity to capture the significant growth in the Chinese oil
and petrochemicals industries by teaming up with an industry leader
such as LianDi. We look forward to leveraging our technology
expertise with their long-standing relationship and servicing
capabilities with the largest oil companies in China."
"We recognized that in order to penetrate the Chinese market, we
needed a local partner with experience and a proven track record,"
continued Mr. Hitoshi Minamiguchi.
We were very impressed with the consistent, high-quality of service
LianDi has demonstrated. We look forward to a long and prosperous
relationship with LianDi."
The PRC government recently mandated automated cleaning
technologies to be used in all oil refiners in China starting on July
1st, 2010 in order to improve the safety of refining
operations. Management estimates the market for cleaning
technologies is approximately $120
million, growing at about 7% per annum. Currently, only less
than 20% of Chinese oil refineries use automated cleaning
technologies compared to 80%-90% in developed countries. LianDi
projects revenues of $3.5 million and
net income of $1.5 million during the
first twelve months after the initial order is shipped.
"We are honored to be chosen as System Kikou's exclusive partner
in China," stated Mr. Jianzhong Zuo, Chairman, Chief Executive Officer
and President of the Company. "With over 300 installations of its
advanced automated cleaning systems worldwide, System Kikou is a
leader in an emerging industry. China has around 200 oil refineries compared
to 122 five years ago. Rising regulatory standards and the ageing
of oil refineries will drive robust demand for automated cleaning
and treatment systems. This agreement allows LianDi to be a
significant competitor in this sector."
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 impact of the proceeds from the private
placement on the Company's short term business and operations; 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:
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Investor Relations:
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HC International,
Inc.
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Ted Haberfield,
Executive VP
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Tel:
+1-760-755-2716
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Email:
thaberfield@hcinternational.net
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SOURCE LianDi Clean Technology Inc.