To promote wide application of "Hot-in-Place" recycling technology in the PRC
Hong Kong, July 13, 2014 - (ACN Newswire) - Freetech Road Recycling Technology (Holdings) Limited ("Freetech", or the "Group;" stock code: 6888), a leading and fast-growing service provider in the asphalt pavement maintenance ("APM") industry using "Hot-in-Place" recycling technology, announced that the Group has entered into a Shareholders Agreement in relation to the establishment of the Joint Venture ( "the JV" Company") with COSCO (H.K.) Industry & Trade Holdings Limited ("COSCO (H.K.)"), an indirect wholly-owned subsidiary of COSCO Group. Upon the establishment of the JV Company, Freetech and COSCO (H.K.) will own 51% and 49% of the shareholding interest in the JV Company respectively.
The continuous growth in the overall asphalt pavement maintenance service industry in the PRC and the low penetration rate of recycling technology (including the Group's "Hot-in-Place" recycling technology) within that industry provide great opportunities for development. Upon the establishment of the JV Company, both parties can take advantage of their business advantages, integrate their resources, promote a wider application of the "Hot-in-Place" recycling technology within agreed regions, advance the development of a low carbon economy and a cyclical economy and to enhance the Company's core competitiveness, increase the Company's economic efficiency, and obtain satisfactory economic benefits to JV Parties. The Directors consider that the business of the JV Company is promising and has great growth potential, and will become an important part in the Group's overall development strategy.
Mr. Sze Wai Pan, Chairman of Freetech said, "We are very pleased to have such a prominent JV partner, COSCO (H.K.) Industry and Trade. As China's largest enterprise and one of the world's leaders in the logistics industry, COSCO is a valuable partner of the Group. The JV has also demonstrated the recognition of our advanced 'Hot-in-Place' technology by COSCO. Leveraging COSCO's wide spectrum of businesses in the PRC and globally, the JV should bring business opportunities which in turn accelerate the development and promotion of our technology. Thus, we strongly believe that the JV would help us to tap the enormous recycling technology market in the PRC."
About 'Hot-in-Place' Recycling Technology
"Hot-in-Place" Recycling Technology is used in asphalt pavement maintenance, an on-site, in-place technology that rehabilitates deteriorated asphalt pavements through heating, scarifying and mixing the damaged asphalt materials with new materials and thereby minimises the use of new materials. The primary purpose of this process is to repair pavement damages such as cracks, ruts and holes, and bumps.
About Freetech Road Recycling Technology (Holdings) Limited
Freetech Road Recycling Technology is the asphalt pavement maintenance ("APM") service provider renowned in the sector for its Road Doctor brand with patented "Hot-in-Place" Recycling Technology as well as the manufacturer and seller of a wide range of APM equipment. As at 31 December 2013, the Group owned 87 registered patents and had 18 patent applications pending in "Hot-in-Place" Recycling Technology and related equipment. The Group has also established ten joint ventures and associates across China including Hunan, Inner Mongolia, Jiangsu, Fujian, Xinjiang and Guangdong in order to expand its customer base across the country.
Source: Freetech Road Recycling Technology (Holdings) Limited
Contact:
Strategic Financial Relations Limited Vicky Lee Tel: (852) 2864 4834 / 9471 2009 Email: vicky.lee@sprg.com.hk Kate Kwan Tel: (852) 2864 4873 / 9077 1337 Email: kate.kwan@sprg.com.hk Stephanie Liu Tel: (852) 2864 4852 / 9616 6167 Email: stephanie.liu@sprg.com.hk Fax: (852) 2527 1196
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