WEIFANG, Shandong, China, Aug. 6 /PRNewswire-Asia-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) announced today that on August 3, 2010, Weifang Shengtai Pharmaceutical Co., Ltd ("Weifang Shengtai"), its operating subsidiary in China, entered into an agreement with Jiangsu Zongheng Drying Equipment Co., Ltd. ("Jiangsu Zongheng") to purchase a 30T/MVR Glucose Evaporator ("the MVR Evaporator") that will help reduce total energy consumption and enhance production efficiency at Weifang Shengtai.
The MVR Evaporator consists of an automatic control system and other highly efficient parts and structures. While it consumes more electricity, it will consume less steam and in net, will reduce total costs in the process of evaporation. According to the Exchange rate on August 3, it will cost Weifang Shengtai 1.7 million USD to purchase and install the MVR Evaporator. The total cost of 1.70 USD includes the contract purchase prices of 1.55 million USD and the purchase price of 0.15 million USD of the accessories. Recognizing the MVR Evaporator as a major energy-saving project, the National Development and Reform Commission of the Chinese Central Government will award Weifang Shengtai 0.53 million USD in a one-time payment, as a result, the total costs of the MVR Evaporator project will reduce to 1.17 million USD, which in turn will be fully recovered by the operational cost saving within a year after the MVR evaporator is fully operational in production.
The MVR Evaporator is one of the projects that Weifang Shengtai is committed to in removing bottlenecks identified in production process, exploring of potential production capacity and cost reduction. Shengtai Pharmaceutical, Inc. will continue to communicate to investors the development of Weifang Shengtai's commitment to exploring of potential production capacity, cost reduction and enhancement of production efficiency. With smooth operation at Weifang Shengtai and the rebound of the selling prices of Weifang Shengtai's products after the financial crisis, Shengtai Pharmaceutical, Inc. is confident of its plans that will deliver returns to investors.
About Shengtai Pharmaceutical, Inc.
Shengtai Pharmaceutical, Inc. through its wholly owned subsidiary, Shengtai Holding, Inc. (SHI), and the Chinese operating company of Weifang Shengtai Pharmaceutical Co., Ltd., is a manufacturer and distributor in China of glucose and starch products as pharmaceutical raw materials, other starch products and other glucose products such as corn meals, food and beverage glucose and dextrin. For more information about Shengtai Pharmaceutical, Inc., please visit http://www.shengtaipharmaceutical.com/ .
Forward Looking Statements
Certain statements in this press release and oral statements made by the Company constitute forward-looking statements concerning the Company's business and products. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned capacity expansion and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs, but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the pharmaceutical industry, pricing and demand trends for the Company's products, changes to government regulations, risk associated with operation of the Company's new facilities, risk associated with large-scale implementation of the Company's business plan, the ability to attract new customers, ability to increase its product's applications, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
For more information, please contact:
Shengtai Pharmaceutical, Inc.
Tel: +86-536-629-5802
Email: shengtaigsz@hotmail.com
Investor Relations Contact
DME Capital, LLC
Mr. David M. Elias
Tel: +1-516-967-0205
Email: dave@dmecapital.com
