BINGO !!!!!!!!!!!!!!!!!!!!!!!Solucorp Signs China Agreement With BOHAI Chemical Group
WEST NYACK, N.Y., Sep 1, 1999 -- Solucorp Industries Ltd. (SLUP - OTC) the Company is pleased to announce that a recent trip to Tianjin China by Smart International (Smart) and Solucorp Industries Ltd. employees, including Li Zheng of Smart and Peter Mantia, President, John Van Duzen, Director and Joseph Kemprowski, Founder / Consultant of Solucorp, has resulted in a multi-faceted agreement with the Tianjin BOHAI Chemical Group Co.
Chinese representatives supporting and attending this signing of the first ever Central Government supported heavy metals remediation agreement included Chu De Qing, The Secretary of the Party Manager representing the Government of China, Liang Su, the Vice Mayor of Tianjin, Zhang Hong Nian, Department Chief of the Tianjin Municipal People's Government, Zhang Xiao Chun, Deputy Director General of the Tianjin Environmental Protection Bureau, Li Guang DA, Chairman of China Chamber of International Commerce and Chairman of the China Council for the promotion of International Trade-Tiajin sub-council, Wang Baodi, Chairman and President and Zhang Pei Yu, Vice General Manager Director, of the Tianjin BOHAI Chemical Industry Group Co.
The agreement made National news in China and was reported as the first Central Government sponsored heavy metals clean up. The Chinese referred to the agreement in the context of the American Agreement to extend normal trade relations (NTR) with China as set forth in the July 27, 1999 statement by President Clinton in which the environment was an issue.
The Tianjing Municipality has a population of 9.2 million people and is the third largest city in China. The Tianjin Mayor showed strong support of utilization of Solucorp's MBS(R) (Molecular Bonding System) Technology, which has the status of a U.S. EPA Superfund Innovative Technology, to permanently solve the heavy metals contamination problem associated with Sodium Chromate production at the Tong Sheng Chemical Plant; a problem which has plagued Tianjin for over forty (40) years.
Smart International's Li Zheng was highly instrumental in negotiating the agreement for remediation of the Tong Sheng Chemical Plant's Chromium Slag mountain with Solucorp's MBS(R) (Molecular Bonding System) process which guaranteed, among other things, completion of Phase I of the project in one (1) year and that the treated slag under acid rain conditions would meet simulated MEP (Multiple Extraction Procedure) for 1,000 years to be non leachable. The remediation outcome must also meet both Chinese and U.S. Toxicity Characteristic Leaching Procedure (TCLP) requirements.
The Chinese city government has advanced BOHAI $1 million U.S. Dollars ($8 million RMB) for startup of phase I of the project. BOHAI Chemical is responsible for funding the entire project. The total size of the Chromium Mountain estimated as up to 170,000 tons in the agreement, has been estimated as actually between 400,000 and 800,000 tons by Smart representatives in China.
The agreement also calls for two (2) In-Line Systems to be installed by Solucorp at the BOHAI Chemical plant production facility so as to eliminate future contamination at its source. Solucorp has been running similar In-Line operations at the Doe Run Battery Recycling facility in Boss, Missouri for the past three (3) years.
BOHAI Chemical also agreed to commence negotiations to structure a Joint Venture whereby BOHAI Chemical Group would be an Exclusive Licensee to market and expand, for Solucorp and Smart, the patented MBS Technology in stabilizing and remediating contaminated waste streams in existence throughout the People's Republic China.
BOHAI Chemical Group is listed on the Hong Kong Stock Exchange, employs 130,000 personnel, and has total capital of $15.5 billion RMB and annual sales of $10 billion RMB. BOHAI also has 110 subsidiaries and 54 Joint Ventures with foreign companies accounting for in excess of $54 billion RMB per year according to BOHAI officials. BOHAI's main plant covers an area in excess of 450 km2.
Solucorp and Smart International had entered into a License Agreement in 1997 whereby Smart would pay Solucorp $2 million U.S. annually for exclusive rights to the MBS process in China and also under separate agreement, Smart has been the primary producer of chemicals for Solucorp's MBS process. By mutual agreement Solucorp has been offsetting its license fees from Smart against the cost of the chemicals allowing for a more rapid production and stockpiling of chemical inventories in anticipation of future business in China, and elsewhere, giving both Solucorp and Smart a head-start on inventory availability for this project. In turn, Smart has continued to honor its licensing agreement which was paid mostly through chemical cost offset to Solucorp also based on Smart's belief of the long range potential for revenues from business in China. Signing the BOHAI agreement and entering into the understanding to negotiate a future joint marketing venture, attest to the foresight and determined efforts of Smart International.
The Tianjing project when completed based on the lower Smart estimated tonnage of 400,000 will require an approximate 32,000 tons of chemical to be produced by Smart. Based upon this estimation, phase I operations will require 13,600 tons of material. Solucorp has stockpiled approximately 7,000 tons at Smart and prepaid an additional 7,000 tons of chemicals over the past two (2) years. The BOHAI agreement requires Solucorp to ship existing inventory to a Solucorp site location at the BOHAI facility. BOHAI will pay Solucorp for the inventory as it is used in operations which are expected to begin sometime in the first quarter of the year 2000. The project will employ 130 workers from the Tianjin area.
Solucorp is unable to determine the full value of this agreement, but rather stresses the importance of this agreement as a culmination of two (2) years of Smart International and Solucorp's efforts to convince the Chinese government of the superiority of the MBS process and to penetrate the environmental clean-up markets in China through its relationship with BOHAI Chemical and the support of the Chinese government, Chinese EPA and high ranking government officials.
As part of the agreement BOHAI states that to utilize Solucorp's MBS technology " will have a huge impact to the environmental protection movement at the national scale" and " will positively and significantly promote Solucorp's MBS technology within China so both parties would enjoy the wonderful business benefits together in the future."
The foregoing discussion contains forward-looking statements which are based on current expectations. Actual results, including the timing and amount of revenues recognized, contracts awarded and performed and net income may differ due to such factors as: delays in payment on contracts due to dealings with governmental and foreign entities; fluctuations in operating costs associated with changes in project specifications; economic and other conditions affecting the ability of prospective clients to finance projects; and other risks generally affecting the financing of projects.
CONTACT: Martin E. Janis & Company, Inc., Chicago
Bev Jedynak, 312/943-1100
or
Solucorp Industries Ltd., West Nyack
Brian Binckes, 1-888-SOLUCORP
(1-888-765-8267)
www.solucorpltd.com |
