BEIJING, Nov. 25, 2013 (GLOBE NEWSWIRE) -- Wowjoint Holdings Limited ("Wowjoint" or the "Company") (OTC:BWOWF), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it has entered into two new sales contracts in China and Malaysia, with an aggregate contract value of approximately $2.7 million.
The first contract is with China Railway Group 2nd Bureau. Pursuant to the contract, Wowjoint will retrofit its proprietary 900-ton special launching carrier for this customer. The redesigned equipment will be used in transporting and installing prefabricated box beams in several new railway line construction projects in China. China Railway Group 2nd Bureau is a frequent Wowjoint customer and this contract will further enhance that relationship. Production, delivery and installation of the equipment are expected to begin in early 2014 and should be completed by mid-2014. The value of the contract is approximately $2.1 million, and is expected to be recognized as revenue in 2014.
Wowjoint also entered into is a sales contract with BBE Solutions Sdn. Bhd ("BBE") to provide a single box beam launcher for the construction of the Second Penang Bridge Land Expressway Package 2A in Malaysia. Production of the machine began in November 2013 and delivery is expected to occur in the first quarter of 2014. The total value of the contract is $623,000, of which a portion of the contract will be recognized as revenue in 2013 and the balance will be recognized in 2014. This contract is Wowjoint's third project in Malaysia and the second contract with BBE in 2013, following the successful completion of a highway bridge construction project in 2012.
"We're very pleased with this contract from China, which confirms the improving trend we have seen in the domestic Chinese market recently. We anticipate this trend will continue as infrastructure spending in China returns," stated Mr. Yabin Liu, Chief Executive Officer of Wowjoint. "Following our strategic investment into BBE earlier this year, we and BBE have worked successfully together in pursuing and obtaining international business. We believe that our world-class products and services, strong client relationships, our ability to provide unique solutions and our cooperation with BBE, as well as other international partners, will result in growth both in China and international markets for Wowjoint."
About Wowjoint Holdings Limited
Wowjoint is a leading provider of customized heavy duty lifting and carrying machinery used in large scale infrastructure projects such as railway, highway and bridge construction. Wowjoint's main product lines include launching gantries, tyre trolleys, special carriers, marine hoists and special purpose equipment. The Company's innovative design capabilities have resulted in patent grants and proprietary products. Wowjoint believes it is well-positioned to benefit directly from worldwide infrastructure development by leveraging its extensive operational experience and long-term relationships with established blue chip customers. Wowjoint also continues to expand into other countries and vertical markets, which will help to sustain and balance the Company's growth. Information on Wowjoint's products and other relevant information are available on its website at http://www.wowjoint.com.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release include the projected successful completion of the two contracts described above, the time frame of such completion, and such other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Wowjoint undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this communication except as required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. All forward-looking statements are qualified in their entirety by this cautionary statement.