BEIJING, Oct. 3, 2011 /PRNewswire-Asia/ -- Wowjoint
Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW,
BWOWU, BWOWW), China's innovative
infrastructure solutions provider of customized heavy duty lifting
and carrying machinery, today announced it has entered into a new
line of business in China, by
developing equipment to perform the maintenance and repair of
China's ever expanding railway
system.
Wowjoint has been awarded the contract by China's Ministry of Railway to build the first
ever equipment for inspection of the overhead concrete beams of the
elevated pave way of China's
high-speed railway. The Ministry of Railway recognized Wowjoint's
maintenance and repair machine as the only authorized machine for
its intended use on the high-speed railway. The Company owns
numerous patents regarding the design and manufacturing of this
equipment. This specialized equipment is expected to have an
average sales price of approximately $1
million.
As a key member in the partnership of academic research and
industrial application among academic research institutions and
enterprises, Wowjoint developed this specialized equipment in
connection with China Railway Engineering Consulting Group Co.,
Ltd., China Academy of Railway Sciences, Beijing Jiaotong
University and Beijing Railway Bureau. China's Ministry of Railway specifically
promoted this partnership to develop the equipment to inspect the
overhead concrete beams of the elevated pave way that is used in
China's high-speed railway system
without occupying the rail track or disturbing the operational time
of the track. The equipment is to be built to solve the existing
safety issues associated with the inspection and maintenance of the
overhead concrete bridges, to ensure the reliability and durability
of the concrete structures of the pave way.
Wowjoint will manufacture one set of the model equipment that it
will provide to the Ministry of Railway. The research will make
Wowjoint the manufacturer of the world's first equipment ever used
for the inspection and maintenance of overhead concrete bridge of
high-speed railway. Wowjoint will participate in establishing the
inspection methods, including modes and contents, and the
corresponding technical and operational conditions.
"We're honored to have been chosen by the Ministry of Railway to
provide this specialized equipment for the inspection and
maintenance of the high-speed railways," Mr. Yabin Liu, Chief Executive Officer of Wowjoint
stated. "China has built an
extensive railway system and has plans within their infrastructure
and stimulus plans to grow to 144,000 kilometers of railway by
2015. We believe that this new line of business could be a
substantial revenue stream for Wowjoint in the near future, as well
as contribute to our revenue diversification that we've been
pursuing."
According to statistics, China's total high-speed railway network was
over 20,000 kilometers in 2010. Presently, the total length of
overhead bridges within the high-speed railway exceeds 2,000
kilometers in all trunk passenger dedicated lines. This new
equipment that Wowjoint designed, with its partners on the project,
will be in high demand in the near future due to the existing
infrastructure.
Wowjoint expects to deliver the model equipment to the Ministry
of Railway within the second quarter of 2012. Once the equipment is
delivered and tested by the Ministry of Railway, Wowjoint can
pursue the sale of the equipment to customers and it can also
provide inspection services acting as an inspection company to
generate a new revenue stream from the operation of the equipment.
The Company believes that this line of business will have a
significant contribution to its 2013 results.
About Wowjoint Holdings Limited
Wowjoint is a leading provider of customized heavy duty lifting
and carrying machinery used in large scale infrastructure projects
such as railway, highway and bridge construction. Wowjoint's main
product lines include launching gantries, tyre trolleys, special
carriers and marine hoists. The Company's innovative design
capabilities have resulted in patent grants and proprietary
products. Wowjoint is well positioned to benefit directly from
China's rapid infrastructure
development by leveraging its extensive operational experience and
long-term relationships with established blue chip customers.
Information on Wowjoint's products and other relevant information
are available on its website at http://www.wowjoint.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements in this press release
include matters that involve known and unknown risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance or achievements to differ materially from
results expressed or implied by this press release. Wowjoint
undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances
occurring after the date of this communication. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this communication. All
forward-looking statements are qualified in their entirety by this
cautionary statement. All subsequent written and oral
forward-looking statements concerning Wowjoint or other matters and
attributable to Wowjoint or any person acting on their behalf are
expressly qualified in their entirety by the cautionary statements
above. Wowjoint does not undertake any obligation to update any
forward-looking statement, whether written or oral, relating to the
matters discussed in this news release.
For additional information contact:
Wowjoint Holdings:
Aubrye Foote, Vice President Investor Relations
Tel: +1-530-475-2793
Email: aubrye@wowjoint.com
Website: www.wowjoint.com
SOURCE Wowjoint Holdings Limited