China Environmental Technology enters into environmental protection framework agreement

The company to invest in Xi’an Chanba Ecological Zone Project Milestone to diversify business.

China Environmental Technology Holdings Limited (“China Environmental Technology”) announced on Friday it has entered into a non-legally binding framework agreement (the“Framework Agreement”) with the management committee of Chanba ecological zone in Xi’an in relation to the investment in the construction of a high-tech and low-emission environmental protection system project in the north-wing of Chanba ecological zone in Xi’an.

The Chanba ecological zone project presents enormous business development opportunities, expanding the Group’s current business from sewage treatment to technology intensive comprehensive environmental protection projects.

Under the Framework Agreement, the Group intends to build a high-tech and low-emission environmental protection system in the north-wing of Chanba ecological zone in Xi’an. The Group plans to introduce Beijing Capital Group and several large-scale enterprises and listed companies to jointly develop the project in form of joint-venture or cooperation to design and construct the environmental protection ecological system, according to a China Environmental Technology report.

Mr Xu Zhong Ping, Chairman of China Environmental Technology, said, “The Chanba ecological zone project covers an area of about 30km2 with a total construction cycle of 8 to 12 years. The project differs from the Group’s previous business in function as well as scale. It involves diversified businesses including the construction and operation of a sewage treatment system, a water supply system and a urban heating system in the region. The project also covers the construction and maintenance of the sewage treatment system in the wetland park and investment in energy saving and contract energy management systems. The board believes the possible transaction will provide enormous business development opportunities. The one-stop environmental protection service is expected to promote to other cities in China. ”

At the meantime, the Group is in talks with the Weihe River Management Office of the Shaanxi Provincial Government regarding the basin-wide water treatment project. Leveraging on the Group’s leading magnetic technology in sewage treatment, it is believed that the Group will widely make use of the application of its technology in the Weihe River water treatment project.