Chinese C&D recycler signs municipal contract

Yulong Eco-Materials Limited, which recycles brick, block and concrete and makes bricks and ready-mixed concrete, says it has signed an agreement to process and recycle construction and demolition debris in Zheng Dong New District of Zhengzhou City.

Yulong also says it has commenced work on a project in the district’s Gaozhuang administrative village.

The agreement, signed with the district’s Municipal Construction Office, allows Yulong to serve each of the district’s 28 administrative villages on assignments issued by the Construction Office. Yulong will receive approximately $2.35 (15RMB) per cubic meter of construction materials processed.

In the Gaozhuang project, Yulong expects to recycle roughly 586,000 cubic meters (765,000 cubic yards) of construction and demolition materials, generating nearly $1.4 million in revenue.

According to the Construction Office, all 28 villages are expected to produce more than 15 million cubic meters (19.6 million cubic yards) of debris and scrap during the next four years, offering total potential revenue to Yulong of more than $35 million.

In addition to the tipping fee revenue, Yulong can also sell its processed materials to local construction companies, producing additional incremental revenue.

Yulong says its agreement with the Construction Office is not exclusive (other companies can bid on jobs), but its CEO Zhu Yulong says he is positioning the company to be able to serve as many of the villages as may be assigned by the Construction Office, and he expects Yulong to be working in at least six villages by the end of June 2016.

To service these villages, the company plans to utilize up to five mobile crushing units -- including four that Yulong is in the process of acquiring -- each with an annual processing capacity of 2 million metric tons. (The company’s website shows it using a crusher made by Germany-based Kleemann GmbH.)

“We are very proud to have signed this agreement – our second in a new city within two months, and one of the largest contracts we have signed to date,” says Zhu. “We strongly believe this agreement further validates our growth strategy of expanding our recycling business and offering other local and provincial governments a cost-effective and technically advanced solution to manage and reduce their construction waste and related pollution.”

The company is currently submitting additional contract bids in other areas, says Zhu. Yulong is based in the city of Pingdingshan in Henan Province, China, with its newest contract allowing it to serve Zhengzhou City, that province’s capital.