Today, Wowjoint Holdings Ltd. announced it has secured a $1 million equipment sales contract with China Railway Fangshan Bridge Co., Ltd. With delivery anticipated to take place in March 2011, the equipment includes two customized 160-ton special carriers that will be used in a highway bridge construction project administered by the Erdos Project Department in Batuta-Junggar.
Wowjoint also told investors of other service contracts signed this quarter totaling approximately $3 million. These include an $860,000 technical service contract with China Railway 14th Bureau Group Co., Ltd and China Railway 16th Bureau Group Co. Ltd and a $290,000 technical service contract with No. 1 Engineering Company, Ltd, a division of CCCC First Harbor Engineering Company Ltd. Furthermore, Wowjoint signed a 190 day, $1.77 million beam erection service contract with China State Construction Railway Co., Ltd. Wowjoint will be responsible for providing transportation and erection services, utilizing its special launching carrier for mountainous terrain for the Shenyang-Dandong high-speed railway, specifically the difficult bridge-tunnel connection areas of the railway.
“Wowjoint is very pleased to sign this contract with China Railway Fangshan Bridge Co.,” commented Mr. Yabin Liu, Chief Executive Officer of Wowjoint. “This is a new product that we developed specifically for this highway project, which will also provide a cost savings to our client. We continue to grow our core equipment manufacturing business while focusing on diversifying our revenue, which is evidenced by our new service contracts. Our specialized technical capability is highly regarded by our customers, and this key competitive advantage is the main reason Wowjoint secured these additional service contracts faster than initially expected.”