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
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and business strategy. The words or phrases "plans," "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "think," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. The Company provides no assurances that any potential acquisitions will actually be consummated, or if consummated that such acquisitions will be on terms and conditions anticipated on the date of this press release, and the Company makes no assurances with regard to any results of any such acquisitions.