The purchase orders provide for Cleantech Solutions to deliver a total of 23 units of airflow dyeing machines and components for a total purchase price of RMB13.8 million (approximately $2.2 million). Pursuant to the purchase orders, the Company has received an advance payment of $0.7 million, or 30% of the total purchase price, and will receive an additional 60% of the total purchase price upon installation and the balance within three months of installation.
Cleantech Solutions expects to deliver the units by the end of December 2012. The Company's airflow dyeing machines use air flow rather than water which is used in the traditional dyeing process. The Company believes that the technology used in its air flow units results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.
"With the growing acceptance of our new airflow dyeing technology and the government's mandate to phase out obsolete machinery in China's textile industry, we have seen continued growth in order flow in this segment," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.
"We are pleased to receive follow-on purchase orders from our existing customers, who, by their orders, are endorsing our airflow dyeing machines. Additionally, we are also receiving orders from a new customer, who, we believe, is recognizing the need for new technology and following the general industry trend.
"We believe these orders reflect positively on the high quality of our products and services. We are optimistic that sales momentum from this segment will continue and translate into larger orders, customer growth and higher contribution to our top line for 2012," concluded Mr. Wu.
Cleantech Solutions is a manufacturer of metal components and assemblies, primarily used in clean technology industries. The Company supplies forging products, fabricated products and machining services to a range of clean technology customers, primarily in the wind power sector and supplies dyeing and finishing equipment to the textile industry.
Cleantech Solutions International Inc.
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