PINGDINGSHAN, CHINA--(Marketwired - Jun 19, 2014) - SinoCoking Coal and Coke Chemical Industries, Inc. (
SinoCoking Chairman and CEO Mr. Jianhua Lv said, "This facility, once operational will be one of the largest of its kind in China. We have currently commenced the installation of gas furnaces, electrical equipment and consoles, as well as transporting system, dust removal system, and cooling and purification system."
Mr. Lv continued, "These installations are expected to be completed within 30 days and will be followed by a 60-day adjustment and calibration period. Once completed, the facility is expected to commence initial production of syngas."
Construction of the facility involves over 160 workers and is being managed by Lin Yu Jian Group, a major engineering contracting company based in Henan province. As previously announced, the facility is expected to produce 25,000 cubic meters of syngas per hour. The gross profit margin on syngas sales is expected to be between 45% and 50%, far higher than any other current SinoCoking product.
"We are very excited by our rapid construction progress," continued Mr. Lv. "This facility can potentially provide SinoCoking with new streams of high-margin revenue. Additionally, we will be providing China with significant quantities of a clean-burning fuel which, as China's President Xi Jinping urged, should be replacing coal as an energy source."
On June 16, 2014, China president Xi Jinping called for an "energy revolution" to address the nation's soaring energy demands, crippling pollution problems and massive greenhouse gas emissions. Chinese authorities are enforcing new regulations designed to control these conditions, including placing greater focus on clean coal technologies.
Mr. Lv concluded, "SinoCoking stands ready to cooperate with President Xi's program to make China's atmosphere cleaner and healthier with an abundant source of clean energy. We look forward to providing additional details on the progress made to complete the construction of our syngas facility."
SinoCoking and Coke Chemical Industries, Inc., a Florida corporation, is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking currently owns its assets and conducts its operations through its subsidiaries, Top Favour Limited and Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd., Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd., Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., Baofeng Shuangrui Coal Mining Co., Ltd., and Baofeng Xingsheng Coal Mining Co., Ltd.
For further information about SinoCoking, please refer to our periodic reports filed with the Securities and Exchange Commission.
Forward Looking Statement
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