This is the kind of stuff that I have been hearing for over a year but never comes to fruition. Where are the contracts? Where are the profits? Price swings of ten to twelve percent on a daily basis on zero news good or bad. I'll believe it when I see it in the numbers. Day traders and P&D's are in control. Glad my exposure here is limited.
Euro Tech Holdings Company Limited (Nasdaq: CLWT - News) today announced that its associated company, Zhejiang Tianlan Desulfurization and Dust-Removal Co. Ltd. in Zhejiang, China ("Blue Sky") has recently been awarded four contracts totally US$ 7.3 million by various companies in China for the months of July and August 2007. The contracts cover design, manufacture, supply, and commissioning of desulfurization equipment for various applications.
Blue Sky, found in 2000, is a fast growing company which provides a comprehensive service for design, general contract, equipment manufacturing, installation, testing and operation management of the treatment of waste gases emitted from various boilers and industrial furnaces of power plants, steel works and chemical plants.
T C Leung, Chairman and CEO of the Company, commented. "As the world's largest burner of coal, China has to spend tremendous efforts to achieve the nation's sulfur dioxide reduction target. This creates a huge market potential for flue gas desulfurization (FGD) equipment. As an associated company, Blue sky will be a profit contributor for our company, it will help us boost profit but not the revenues for the 2nd half of 2007 and for coming years. It will also help us make inroads into the air pollution control market in China."
How many power plants, steel works and chemical plants are there in China? I'm wondering with that last sentence, what could that mean? Maybe the government is requiring new construction to have a computized flue gas control monitoring system in place? Oh, and what if the government is going to make all these companies be wired up to send the monitoring data to a government control office.