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Marsulex wins contract to supply flue gas desulfurization system to chinese power utility

TORONTO, ONTARIOà‚–Marsulex Inc. (TSE: MLX) announced today that it has been awarded a contract to supply technology, engineering and selected equipment for Guangdong Electric Power Development Bureau’s Shajiao Power Plant in Guangdong Province in the People’s Republic of China. The Company’s limestone flue gas desulfurization (FGD) system will be installed on Shajiao Unit 5, an existing 300 MW capacity coal-fired boiler. The contract has been awarded through Ever Cleaning Environmental Incorporated, a U.S. firm specializing in commercializing technologies in China.

Marsulex President and CEO David Gee said, “Marsulex already has the world’s largest installed base of FGD units but this contract represents our first entry into China. Our technology removes at least 95% of sulphur dioxide from emissions and with China’s stated intention to reduce harmful emissions resulting from extensive use of high sulphur coal, we are well placed for additional business.” Mr. Gee said that as part of the new agreement, Marsulex plans to license Ever Cleaning to utilize the FGD technology on future projects in China.

The project, which Marsulex won against international competition and is due for completion in early 2003, will generate revenue of approximately Can$9.5 million. Mr. Gee noted that the new contract follows the successful execution of an FGD unit installation at the Pha Lai II Power Plant in Vietnam.

Marsulex is a global provider of technology-based environmental compliance solutions. It provides full-service outsourcing of environmental compliance activities including the ownership and operation of compliance assets and the guaranteed removal of by-products. Marsulex trades on the Toronto Stock Exchange under the symbol MLX.