Tri-Tech Holdings (NASDAQ:TRIT) continues to move up off 52 week lows after announcing Tuesday that it won a $20 million contract for the expansion phase of the Ordos City water treatment plant which is a follow up to the initial contract awarded to TRIT last year. Tri-Tech is working on the project through a joint venture with Beijing Anguo and is responsible for design, procurement, installation, training and maintenance. The plant is behind schedule a bit with test runs still about a year out, but when finished it’s expected to be one of the world’s largest water treatment plants using nano filtration technologies.
Tri-Tech Co-President Phil Fansaid commented on the water situation in China, "China continues to face heavily polluted water sources, which led the Chinese government to issue the drinking water standard (GB5749-2006). This new standard increased water quality indicators from 35 to 106 and is required to be in force by 2012.
"Most of China’s water treatment still uses coagulation, sedimentation, filtration and disinfection. This traditional process is unable to process water at the rate demanded by China’s population, which struggles with water quality issues such as disease-causing microorganisms, algae and algal toxins, turbidity, disinfection byproducts and unstable water quality.
"There is an urgent need for conventional water plants to be upgraded and to enhance wastewater treatment and reduce pollutant emissions, gradually reaching new drinking water standards in the country. Tri-Tech is continuously researching new and advanced membrane technology, disinfection technology, online monitoring technology, zero emission technologies and seawater utilization technology both in China and abroad. We have begun earnest cooperation with the manufacturers and research institutions and we are continuously driving the implementation of the latest and most sophisticated water and wastewater treatment technology for domestic municipal and industrial applications.”
Despite a two day surge in the stock price of TRIT, it remains technically challenged. The stock had recently moved to new all time lows and with the surge is now testing new resistance at the 50 day moving average. It’s going to take more time before a bottom can be called with more certainty.