New Oriental Energy & Chemical acquires Chinese wastepaper recycler and corrugated board manufacturer Xingyang, aims to further grow its business in these areas, estimating increasing demand in China
TIANJIN CITY, China
May 3, 2012
– New Oriental Energy & Chemical Corp. ("NOEC" or the "Company") (NOEC.PK - News) announced today the completion of a Share Exchange Agreement by and among the Company and British Virgin Islands-based Anothen Recycling Company ("Anothen"). Pursuant to the Agreement, Anothen has become a wholly-owned subsidiary of NOEC and the ongoing operations of the Company are now those of the Anothen operating subsidiary, Tianjin Xingyang Package Co., Ltd. ("Xingyang"), based in Tianjin City, The People's Republic of China. Effective with the closing, Mr. Zhang Tongde, 44, Xingyang's founder, CEO and president, has been appointed Chairman of the Board of the Company.
Xingyang is a leading waste paper recycler and manufacturer of corrugated board in China. In 2011, Xingyang recycled and sold 33,000 tons of waste paper which generated revenue of $8.41 million. In the same period, Xingyang also manufactured and sold 45 million square meters of corrugated paperboard, and 20,000 tons of corrugated papers and carbon board, generating revenues of $30.63 million.
"We experienced significant progress in 2011," Mr. Zhang Tongde said, "with record revenues, and rapid growth in particular in our recycling business. During the year, our recycled paper sector accounted for over 21.5% of our revenues for the first time, a percentage we anticipate will be higher in the current year as rapid growth in this sector continues."
Strong Growth Market
Mr. Zhang stated further that management's optimism regarding future growth was based on a number of factors, including the strong growth of the market in which it is operating. He noted, in particular:
Tonnage and Revenue Growth
Mr. Zhang continued, "We are extremely pleased to be able to bring to US investors our growth story. We will continue to grow our traditional corrugated paper and paperboard manufacturing and sales business, which we believe will be driven by continuing increasing demand in China. At the same time, we expect to also greatly expand our paper recycling business, which will be driven by growth in both tonnage and revenue in 2012 and beyond."