Kawasaki Receives Orders for Four CKK Environmentally Friendly Waste Gasification Systems from China

Tokyo, February 16, 2016 — Kawasaki Heavy Industries, Ltd. announced today that Anhui Conch Kawasaki Engineering Co., Ltd. (ACK), a joint venture between Kawasaki and China's Anhui Conch Group,* has received successive orders for a total of four Conch Kawasaki Kiln (CKK) Systems for the Chinese market. The CKK System is an environmentally friendly waste gasification system jointly developed by Kawasaki and the Anhui Conch Group. All four CKK Systems are slated to be delivered to Lingyun County in the Guangxi Zhuang Autonomous Region, Tongling City and Ningguo City in Anhui Province, and Shahe City in Hebei Province by January 2017.

The first of its kind in the world, the CKK System is a lean, green revolutionary innovation combining the waste treatment and cement plant technologies that Kawasaki has refined over the years with the Anhui Conch Group's cement plant operational know-how. Designed to make refuse less polluting, less bulky, and more recyclable, the CKK System integrates cement manufacturing with waste processing by incorporating municipal refuse incinerators into existing cement plants.

The system turns refuse and sewage sludge into gas and effectively uses the thermal energy generated during the gasification process for cement production. This results in reduced use of coal and other fossil fuels as well as reduction in emissions of CO₂ associated with cement production. The ashes generated as a result of refuse and sewage sludge gasification can be reused as materials for making cement. That eliminates the need for final disposal of incineration ash, required with conventional refuse incinerators, and makes the CKK System completely emissions-free.

The CKK System does not require any special facilities for treating dioxins and other toxic byproducts from the waste treatment process since they are detoxified during the cement firing process. It can also save the initial cost needed to construct a new incineration facility since it requires only adding a waste gasification system to an existing cement plant.

These latest CKK System orders bring the total number of orders Kawasaki and ACK have jointly received in the Chinese market up to 23. Sixteen of them have been delivered to Anhui Conch Cement Co., Ltd., the Chinese cement giant operating under the umbrella of the Anhui Conch Group. These systems are currently up and running at its factories, including its facility (with a waste treatment capacity of 300 tons/day) in Anhui Province's Tongling City and another (with a waste treatment capacity of 200 tons/day) in Guizhou Province's Guiding County.

Urban waste management is an urgent issue facing emerging economies like China and countries throughout Southeast Asia due to rapid urbanization. Demand for the CKK System is expected to grow, especially in China. Under the October 2013 guidance issued by China's State Council, more than 10 percent of existing cement plants must implement waste treatment facilities.

Kawasaki and the Anhui Conch Group have established three joint venture companies, including ACK, and in January 2016 established a wholly-owned subsidiary of ACK called Shanghai Conch Kawasaki Engineering Co., Ltd. (SCKE) to expand international business. These companies are working to pave new inroads into emerging markets with environmentally sustainable and energy-efficient business solutions. Kawasaki is leading the way toward creating a greener and more efficient industry standard that will have a lasting positive impact on the global environment.

* The Anhui Conch Group, the parent corporation of Anhui Conch Cement, China's leading cement company as well as one of the world's top cement manufacturers, engages in cement, construction materials, trading and other businesses.

Outline of the CKK Systems