Euro Tech Holdings Company Limited Reports Ballast Water Treatment Systems ("BWTS") Update

Rhea-AI Summary

Euro Tech Holdings Company Limited (Nasdaq: CLWT) has secured a US$440,000 contract for a ballast water port solution system, set for completion by year-end. This project, addressing IMO compliance, marks the company's pioneering role in commercial ballast water treatment in the Asia Pacific. The system, capable of treating 1,000 cubic meters per hour, is expected to enhance business positioning in China and attract further opportunities. The company is also on track to receive revised G8 type approval certification in October 2020.

Positive

• Secured a US$440,000 contract for ballast water treatment system.
• Pioneering role in Asia Pacific for commercial ballast water treatment.
• Expected completion of the project by year-end 2020.
• System designed for high capacity (1,000 cubic meters per hour).
• Anticipated improved business positioning in China post-project.

Negative

• Dependence on compliance with IMO regulations introduces uncertainty.
• Risks related to competition with local Chinese products.
• Potential supply chain issues due to lack of long-term agreements.

HONG KONG, Oct. 9, 2020 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) reported that the company has recently received a letter of award worth about US$440,000 from a Shanghai port client. This project covers design, manufacture, supply and commissioning of a ballast water port solution system with 1,000 cubic meters per hour treatment capacity and is expected to complete before the end of this year.

The company has become the first pioneer to commence on commercial port reception ballast water treatment in the Asia Pacific region. This new milestone will consolidate the company's business positioning in China as well as Asia. It is expected that the company will receive more potential leads after the completion of this benchmark project.

To comply with the International Maritime Organization ("IMO") IMO revised G8 requirements, the company's BWTS has been undergoing the land based test in Xiaoyangshan Harbor in Shanghai. The company expects to obtain the revised G8 type approval certification in October 2020.

About BWTS

BWTS are an imminent requirement by IMO to prevent the biological unbalance caused by the estimated 12 billion tons of ballast water transported across the seas by ocean-going vessels when their ballast water tanks are emptied or refilled. In 2012, ballast water discharge standard became a law in the US. Any vessel constructed in December 2013 or later will need to comply when entering US waters, and existing vessels will follow shortly after. IMO's Ballast Water Management Convention entered into force for new-built vessels on September 8, 2017 after ratification by 52 States, representing 35.1441% of world merchant shipping tonnage. In July 2017, IMO decided that the phase-in period for ballast water system retrofits started on 8 September 2019. 

The company obtained type approval certificate from China's Classification Society for its 200, 300, 500, 750, 1200 and 1250 Cubic Meters per hour BWTS and Alternate Management Systems ('AMS") acceptance for its full range BWTS in 2016.

The IMO convention stipulates that type approval for revised G8 requirements must be obtained for all BWTS installed on or after October 28, 2020.

The ballast water port solution system is a system installed in port to offer ballast water treatment services for ocean going ships without their own BWTS and for those with damaged BWTS.

About AMS

AMS acceptance by the U.S. Coast Guard is a temporary designation given to BWTS approved by a foreign administration. It enables BWTS to be used on vessels for a period of up to 5 years, while the treatment system undergoes approval testing to U.S. Coast Guard standards.

Forward Looking Statements

Certain statements in this news release regarding the Company's expectations, estimates, present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, or expects, or words of similar import, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements indicate uncertainty and the Company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, having the Company's offices and operations situated in Hong Kong and China, doing business in China, competing with Chinese manufactured products, competing with the Company's own suppliers, dependence on vendors, and lack of long term written agreements with suppliers and customers, development of new products, entering new markets, possible downturns in business conditions, increased competition, loss of significant customers, availability of qualified personnel, negotiating definitive agreements, new marketing efforts and the timely development of resources. See the "Risk Factor" discussions in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for its fiscal year ended December 31, 2019.

View original content:http://www.prnewswire.com/news-releases/euro-tech-holdings-company-limited-reports-ballast-water-treatment-systems-bwts-update-301149326.html

SOURCE Euro Tech Holdings Company Limited

FAQ

What recent contract did Euro Tech Holdings (CLWT) secure?

Euro Tech Holdings reported a US$440,000 contract for a ballast water port solution system.

When is the ballast water treatment project expected to be completed?

The project is expected to be completed by the end of 2020.

What capacity does the ballast water port solution system have?

The system has a treatment capacity of 1,000 cubic meters per hour.

What type approval is Euro Tech Holdings expecting to obtain in October 2020?

The company expects to obtain the revised G8 type approval certification.

What is the significance of the ballast water treatment project for CLWT?

This project consolidates the company's market position in China and may lead to more business opportunities.