SOURCE: Sancon Resources Recovery Inc.

April 11, 2011 08:00 ET

Sancon Enters Into a Preliminary Acquisition Agreement With Beijing Environmental Company

SHANGHAI, CHINA--(Marketwire - Apr 11, 2011) - Sancon Resources Recovery, Inc. (OTCBB: SRRY) (or "Sancon"), a growing waste logistics and recycling company with main operations located in China, announced today that it has entered into an acquisition agreement with a profitable Beijing environmental services company.

On March 25, 2011, Sancon signed a letter of intent with Beijing JDY Environmental Recycling Co., Ltd. (or "Beijing JDY"), under which Sancon's majority owned subsidiary Sancon Shanghai will acquire 51% equity of Beijing JDY. Sancon management believes this acquisition will contribute over US$15M revenue annually with healthy future growth projections.

Beijing JDY was established in 2005 in the Changping District of Beijing. It collects and processes scrap metal, waste paper, cardboards and plastics. Beijing JDY Services a population of 20 million within 16,800 square kilometers in the suburbs of Beijing. The company aims to expand its operations into additional areas of Beijing over the next three years. In 2009, under the government initiative to standardize and restructure the recycling operation across China, Beijing JDY became one of the only two recycling companies selected by the Beijing Municipal government to aggregate the fragmented recycling operations in the area. The initiative was part of the Chinese government's 11th 5-year plan to improve the industry image and urban environment in China.

The acquisition of BeijingJDY is expected to complete before the end of August 2011.

About Sancon Resources Recovery Inc.

Sancon Resources Recovery, Inc. is an environmental services company specializing in the collection, processing, and reuse of recycled waste materials such as plastic, metal, paper, cardboard and glass. The recycled materials reenters the manufacturing market to make a wide variety of new products, including outdoor furniture, construction material, building material, packaging material and other products. The use of recycled raw material is both environmentally friendly and an important method to lower production costs for manufacturers to stay competitive. Sancon currently has recycling plants and logistics operation in Melbourne Australia and across major cities in China. For more information please visit: www.sanconinc.com

Forward-looking statements:
The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

Contact Information

  • Contact:

    Sancon Resources Recovery, Inc.
    Ms. Maggie Zhang
    +86 21 6775 6099
    info@sanconinc.com