Yulong Eco-Materials Limited (Nasdaq: YECO) said it has signed an agreement to provide construction waste recycling services in various 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.
As per the agreement, signed with one of the Zone´s Administrative Offices, Yulong has commenced servicing the 757 homesteads of Xiaoli Village. For this project, the company will receive 3800 RMB, or about USD600, per homestead. Half of this fee shall be remitted upon processing of the homestead´s waste and the other half upon cleaning of the homestead. Yulong expects to complete its work in the village by early next month.
Additional assignments within the Zone are likely forthcoming, said Yulong, and have total potential revenue to the company of up to USD55 million over five years. This estimate is based upon the Zone´s total of 165 villages averaging about 550 homesteads each.
Yulong is a vertically integrated manufacturer of eco-friendly building products and a construction waste recycling company located in the city of Pingdingshan in Henan Province, China. The company is currently Pingdingshan´s leading producer of fly-ash bricks and concrete as well as its exclusive provider of waste management services.