|By Marketwired .||
|February 18, 2014 08:15 AM EST||
ST. LOUIS, MO -- (Marketwired) -- 02/18/14 -- Tanke, Incorporated (OTC Pink: TNKE) (the "Company"), a diversified holding company focused on emerging technologies and "cleantech" is pleased to announced the signing of an incubation, management and investment agreement with Xinyue Coating and Finishing Ltd., a company headquartered in Jiaxing City, China. The agreement is expected to bring management revenues of $4.8 million in 2014 and additional incubation and investment revenues of $60 million.
Tanke's incubation and management program will provide Xinyue microfunding, management and financial advisory services to transform their export dependent model into a growth oriented one thought diversification, brand promotion and technology adaptation.
"Xinyue reputation in their regional industry is already very good and under our incubation and investment program we expect them to expand into new, larger opportunities and broaden their geographic distribution. Its business is in a growing and undiscovered industry which we like, a good investment opportunity with much upside potential," stated Xiaoying Zhang, CEO of Tanke Inc.
Xinyue is a leading pigment, dye and paint manufacturer and distributor in the Zhejiang Province, a coastal area with over 54 million population and a GDP of $613 billion (2013), 4th largest regional GDP in China.(2) Xinyue is a well established dye, pigment and paint company's whose main product have traditionally served the export-oriented market. After a decade, they have grown to become the leader in their region with a group turnover of over $500 million. However, dependency on the export market has required them to diversify into other market and business segments. The company is a successful startup case. "We started with just one truck, a handful of brushes, and the desire to provide general contractors with resources on which they could depend," says Joseph Z. Miao, Founder and President of Xinyue.
The worldwide market for dye and pigments is expected to rise to US$34.2 billion by 2020.(5) Asia has the highest rate on a quantity basis followed by Europe and North America. The Dye and pigment in the US alone is an $8 billion industry, where inorganics represents 68% of the industry revenues, according to the US Census Bureau. The worldwide market had a total volume of around 7.4 million tons (2006) and US$ 20.5 billion in 2009, around 1.5-2% up from the previous year. Stable growth rate is expected for the near future. Demand in the US for paint and coating alone is expected to rise 4.2% annually to 1.5 billion gallons by 2017 with the architectural and automotive market remain the fastest growth and the residential offering good opportunities with Asia Pacific being the largest market in the world. The worldwide sales are said to increase up to US$ 24.5 billion in 2015, and reach US$ 27.5 billion in 2018. (1,3,4,6)
"We are thrilled to enter to this agreement with Xinyue. We announced the launch of our new innovative and strategic incubation program this year 2014 and this agreement marks the beginning of it; a program that is aimed at accelerating companies growth though technologies and brands to the market, this incubation and management program is expected to bring to Tanke revenues of $4.8 million as a start and go up to $60 million," stated Xiaoying Zhang, CEO of Tanke Inc.
"We at Xinyue have aggressive expansion plans currently underway; we hope to grow a portion of our target market over the next few years. Tanke's incubation model will further enhance our reputation via brand promotion but also reduce operating costs and create new revenue potential," stated Joseph Maio, President of Xinyue.
"We are happy to be at the ground floor of this opportunity. Pigment, dye and paint industry growth is stable in the USA and largest in Asia. China, being one of the fastest growing markets in the world warrants our continued expansion. Moreover, our expertise in high growth industries, development of proprietary technology & brand promotion is a good combination with Xinyue strategic networks and distribution channels throughout China. It will position us to become a significant player in the region and enable Xinyue to achieve a global reach," added Xiaoying Zhang, CEO of Tanke.
1. Dye & Pigment Manufacturing Market Research Report Sept 2013.IBISWorld.
2. Transparency Market Research "Dyes and Pigments Market - Global Industry Analysis, 2013 - 2019.
3. Paint & Coatings - Industry Research. Freedonia
4. Dyes and Pigments Market - Globall Industry Analysis 2013-2019. Transparency Market Research
5. Market Study Pigments, 3rd Ed., Ceresana, 11/13.
6. Market Report World Pigment Market, Acmite Market Intelligence
About Tanke Incorporated
Tanke is a diversified holding company with the mission to develop, manage and finance emerging companies in high growth industries. Tanke is focused in the development of environmental technologies and "Cleantech" for a wide range of markets such as commercial, industrial and municipal applications. Tanke believes that globalization and the emergence of Asia stresses natural resources, water, energy and food, and environmental technologies will be at the forefront of the new paradigm shift in usage of resources. Through its subsidiaries and affiliates in the world and with its deep experience in China - the fastest growing emerging market in the world, Tanke seeks to grow through acquisitions, organic growth in the USA and also in the emerging markets. Our holdings consist of: Environmental & Water technologies, eWaste and reverse logistics technologies, and The Triple R Water recycling technology under the Re:Water brand.
Safe Harbor Statement: Certain statements and information included in this release may constitute "forward-looking statements" as defined in the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied in such statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in the Company's disclosures. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by federal securities laws.
Additional information is available on the Company's website: www.tankeinc.com