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RINO International Corp. (RINO) Signs Sinter Flue Gas Desulphurization Contract with Chinese Firm

RINO International Corp. is an industrial technology-based environmental protection and remediation company based in China. Through their subsidiaries and affiliates in China, the company is in the business of designing, manufacturing, installing and servicing wastewater treatment and exhaust emission desulphurization equipment principally for use in China’s iron and steel industry.

The company announced today that it signed sinter flue gas desulphurization build-operate-transfer (BOT) contracts with Shougang Jiantang Iron & Steel Company Ltd. The BOT contracts consist of a build contract and an operating contract, valued at a total of $118 million. The project commenced at the Hebei Province Tangshan City Caofeidian Industry zone facility with initial engineering design work on January 1, 2010 and the installation will be completed by September 30, 2010.

The build contract, valued at $33.8 million, includes $25.8 million construction principal and $8 million in interest and it covers the design, construction and installation of two ’semi-dry flue gas desulphurization (FGD) units’. The customer will make an initial payment of $4 million one year after the units have received product approval by the customer and environmental acceptance by the State Environmental Protection Department (SEPD). The balance of the build contract will be paid in annual installments of about $3 million.

The operating contract, valued at approximately $84.3 million, has a 10-year term and will commence upon receipt of final approval from the SEPD. RINO will be responsible and bear the expenses for the daily operation of the units. This includes obtaining supplies such as lime, and utilities such as water and power. The customer will make annual payments to RINO of approximately $8.24 million through monthly installments. RINO will also receive $1.9 million for maintenance upgrades in the fifth year of the contracts.

The company was pleased to sign the contract and is looking forward to the future. The CEO of RINO International, Zou Dejun, said “We are extremely pleased to finalize this contract with Shougang Jiantang Iron & Steel, a top steel producer in China with annual production of approximately 10 million tons. The company has plans to double its capacity in the near term, which will create an incremental future opportunity for additional FDG systems.”

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