These latest negotiations come soon after the October 2006 announcement from the company that it booked its largest ever order of $12.9 million with the Liao Ning Water Reservoir and water supply company in the northeast of China. Pending what the company hopes will be a successful resolution to these latest negotiations, TTCM China expects to add to its backlog of orders that at the beginning of the year was in excess of $24.5 million, and has grown substantially in 2006.
The Company is advancing its business model, expanding into new regions, cultivating new relationships, and developing new markets for its products. In particular, TTCM China is aggressively pursuing opportunities in the southern and southeastern regions of China, where economic growth is on an even more rapid pace than in the rest of the country.
In addition to the current negotiations with companies in GuangZhou, other negotiations are in progress with companies in the GwangXi province (with a population of 49 million) across from HaiNan Island, and in the FuJian Province (with a population of 35 million) across from Taiwan. The tremendous population pressures, exacerbated by sustained economic growth and industrialization, have strained the infrastructure of the country, and these conditions are even more pronounced in the southern and southeastern provinces.
Mr. Jiqun Wang, Founder and Chairman of TTCM China, said, "This is a further indication of the strategy of the Company to move forward, expanding business in the southern and southeastern regions where the economic growth is even faster than the rest of the country. Once again it demonstrates clearly that there is growing demand for our high technology pipes in China, particularly to provide water to rapidly growing areas as well as the flood control systems. Because our pipes are more lightweight and cost efficient, they are suitable for large-scale projects such as those in the GwangXi, GwangDong and FuJian Provinces. We expect to see growing momentum in 2007 and into 2008 to meet the tremendous demand for clean water delivery and flood control systems in China."