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ZK International Group Co., Ltd. to Form Joint Venture and Bid on Hydropower Project with Total Estimated Cost of 4.9 Billion RMB
WENZHOU, China, Dec. 10, 2020 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZKIN", "ZK International" or the "Company"), a designer,
About this update from Zk International Group Co., Ltd
[{"type":"text","content":"WENZHOU, China, Dec. 10, 2020 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) (\"ZKIN\", \"ZK International\" or the \"Company\"), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, today announced that it signed a letter of intent with Tuopeng Industrial, a prominent construction and real estate company. ZK has worked with Tuopeng Industrial for more than 18 years, and together they will form a joint venture that would bid on the construction of a navigation and hydropower project with a total cost estimated to be 4.9 Billion RMB (approximately USD 0.7 Billion). The project is expected to be funded by the local government, which will be facilitated through the development and sales of the surrounding lands.\nThe government of Chongqing, the largest city in western China, is planning to build a Navigation and Hydropower Junction (the \"Junction\") on Qu River to connect the river, whereby making it possible for ships to directly sail to Shanghai via Chongqing. The project is a new model of inland river development, which is designed to provide services beyond navigation, such as electricity generation, water supply, flood and drought management, irrigation, fisheries, environmental services, and recreational activities. Such projects will have significant economic, social and environmental benefits to the area. \nPursuant to the letter of intent, the Company will own 51% of the joint venture and Tuopeng Industrial will own 49%. The Company and Tuopeng Industrial have been negotiating with various levels of government and the deal depends on the completion of due diligence by all parties, the final approval of the government, and the board approval of both parties. If approved, the Company anticipates that this project will have a significant positive impact on the growth of the Company in 2021 and its expansion plans into the western China market will be underway.\nAbout ZK International Group Co., Ltd.\nZK International Group Co., Ltd. is a China-based designer, engineer, manufacturer and supplier of patented high-performance stainless steel and carbon steel pipe products that require sophisticated water or gas pipeline systems. The Company owns 28 patents, 21 trademarks, 2 Technical Achievement A...