Unassociated Document
UNITED
STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
April 6, 2009
CHINA RECYCLING ENERGY
CORPORATION
(Exact
name of registrant as specified in its charter)
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Nevada
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000-12536
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90-0093373
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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Suite
909, Tower B
Chang An
International Building
No. 88
Nan Guan Zheng Jie
Xi An
City, Shan Xi Province
China
710068
(Address
of principal executive offices, including zip code)
(86-29)
8769-1097
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
£
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
£
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
1.01. Entry
into a Material Definitive Agreement
On April
6, 2009, China Recycling Energy Corporation (the “Company”) issued a press
release announcing that it has entered into a joint venture agreement with Erdos
Metallurgy Co., Ltd. (“Erdos”). The agreement provides that the
Company’s wholly owned subsidiary, Xi’an TCH, and Edros will jointly invest in a
newly formed entity that will recycle waste heat from Erdos’s metal refining
plants to generate power and steam, which will then be sold back to
Erdos.
The joint
venture entity (the “JV”) is expected to recycle heat from 54 iron ore furnaces
of Erdos by building heat power generator stations and steam collection
stations. The capacity of the JV project is expected to be 70 MW
electricity and 30 MT steam/hour, which should generate annual revenue of $38
million (RMB 265 million), but may increase to 120 MW
electricity. The JV will save energy, reduce carbon dioxide emissions
and reduce production costs for Erdos.
The JV
has a term of 20 years from the date when the JV receives its business license.
The first power station is expected to be completed and start operating in
October 2009, and the whole project is expected to be finished by the end of
2011. The total investment for the project is estimated at
approximately $74 million (RMB 500 million). Xi’an TCH will act as
the general contractor for the project.
In order
to capitalize the JV, Erdos will contribute land, water, waste heat and 10% of
the total investment of the project, and Xi’an TCH will
contribute 90% of the total investment. Xi’an TCH and
Erdos will own 80% and 20% of the equity of the JV, respectively, until Xi’an
TCH and Erdos have received a complete return on their
investment. When the parties have received a complete return on their
investment, Xi’an TCH will transfer 20% of its equity interest to Erdos at no
cost. When the term of the JV expires and Xi’an TCH has received a
complete return on its investment, Xi’an TCH will transfer its remaining equity
to Erdos at no additional cost.
A press
release announcing the joint venture agreement is attached as Exhibit 99.1
to this Current Report on Form 8-K and is incorporated herein by
reference.
Item
9.01. Financial
Statements and Exhibits.
(d) The following exhibit is
filed with this report.
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Exhibit
No.
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Description
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99.1
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Press
release dated April 6, 2009
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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China
Recycling Energy Corporation
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Date:
April 6, 2009
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Xinyu
Peng, Chief Financial Officer
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EXHIBIT
INDEX
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Exhibit
No.
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Description
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99.1
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Press
release dated April 6,
2009
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