ZHEJIANG, China, June 2, 2011, /PRNewswire-Asia/ -- Lizhan
Environmental Corporation ("Lizhan" or the "Company") (Nasdaq:
LZEN), one of China's leading
manufacturers of eco-friendly fabrics made from patented
technologies, today announced two separate orders totaling
$12.4 million from two new
international furniture customers. Lizhan expects to deliver
approximately 915,000 meters of Evergreen Products over the next
twelve months.
Chairman and Chief Executive Officer Jianfeng Liu said, "We are delighted to have
secured orders from two leading international customers, who
provide penetration in new important markets and will generate
revenue starting in the 3rd quarter. Novatex and Beijing Hengxin
Kaibo Textile Co. Ltd. placed orders after conducting extensive
quality testing, validating the high quality and compelling value
that our Evergreen Products offer."
Lizhan signed a one-year agreement with Novatex S.p.A.
("Novatex") for delivery of approximately 495,000 meters of
Evergreen Products. Novatex is a leading manufacturer and
distributor of textiles based in Forli, Italy. Lizhan's custom recycled fabrics will
be utilized by Novatex to produce sofa and home furnishing
products. Novatex obtained the exclusive rights to distribute
Evergreen Products in Turkey and
the European Union, excluding Poland and Denmark.
The Company also signed a two-year agreement with Beijing
Hengxin Kaibo Textile Co. Ltd. ("Hengxin Kaibo"), which includes
approximately 420,000 meters of its Evergreen Products for the
first year. Hengxin Kaibao paid a $255,000 deposit for its first order and obtained
the exclusive right to distribute Evergreen Products in
Russia and 10 surrounding
countries.
Lizhan's Evergreen Products met the quality of genuine leather
products after extensive testing by an independent testing firm in
Italy, the Daedalus Company
("Dedalo"). Dedalo specializes in analyzing the chemical and
physical qualities of a wide variety of products and materials,
including leather and textiles. Dedalo conducted these tests at the
request of Novatex.
To support enhanced production capacity and meet governmental
regulations, the Company announced that it has completed
installation of the water treatment equipment for Line 1 at its
Evergreen Products manufacturing facility. The new production line
will be capable of manufacturing approximately 3,000 meters per day
initially, gradually ramping to 5,000 meters per day over the next
several months. Using customized equipment imported from the U.S.,
the new Evergreen Product facility will be able to manufacture
high-grade recycled leather.
Mr. Liu continued, "After several months of rigorous testing,
our first Evergreen Products manufacturing line has started volume
production. Using our patented production technology, we truly
believe we have developed a unique, environmentally friendly
recycled leather product that can meet our clients' quality demands
while being utilized in a wide variety of applications. These
orders confirm our ability to secure sizeable orders with
significant customers. In addition, we are in active discussions
with several prospective domestic and international customers and
expect additional orders to be forthcoming."
About Lizhan Environmental Corporation
Lizhan Environmental Corporation is one of China's leading manufacturers of eco-friendly
fabrics whose products are developed with patented technology that
regenerates collagen fiber from leftover cuttings, pieces and
trimmings of genuine leather. The Company's products are mainly
used in furniture, garments and other consumer applications.
Safe Harbor Statements
This press release may contain forward-looking statements
within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve inherent risks and uncertainties that could
cause actual results to differ materially from those projected or
anticipated, including risks outlined in the
Company's public filings with the Securities and
Exchange Commission, including the Company's
registration statement on Form F-1, as amended. Some of risks
inherent in an investment in our company include, but are not
limited to, our limited operation history, our need to maintain
sufficient levels of liquidity and working capitals, the potential
need to reduce our expansion plans, price inflation in the PRC,
difficulties in developing and selling our new Evergreen Products,
seasonal patterns in our business, protection of our intellectual
property and the risk of infringing the intellectual property of
others, customer decisions to discontinue purchasing our products,
and restrictions imposed by Chinese regulations, including every
policies. All information provided in this press release is
as of February 1 2011. Except as
required by law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise, after the date on
which the statements are made or to reflect the occurrence of
unanticipated events.
Contacts:
Company:
Lizhan Environmental Corporation
Silvia Liu, Investor Relations
Manager
Email: ir@lezncorp.com
Phone: +011-86-573-8862-268
Investor Relations:
HC International, Inc.
Ted Haberfield, Executive Vice
President
Email: thaberfield@hcinternational.net
Phone: +1-760-755-2716
SOURCE Lizhan Environmental Corporation