-Linear Motor Oil Pump Broadens Company's Product Line into Oil and Gas Industry-
HARBIN, China, May 11 /Xinhua-PRNewswire/ -- Harbin Electric, Inc.,
(Nasdaq: HRBN) a U.S. company, with operations based in Harbin, China, today
announced that the Company has successfully developed a high efficiency,
energy saving "Tower Type Oil Pump" driven by permanent magnetic linear motors
for the oil and gas industry.
The new generation of Tower Type Oil Pump is the world's first vertical
oil pump that adopts a large thrust cylindrical synchronous linear motor,
producing measurable energy savings. In addition to the benefits of energy
efficiency, key features of the intelligent design include automatic and
reversing speeds, as well as significantly reduced operational maintenance
costs. This specially designed pump contains unique motor technologies which
allow the pump to consume less energy during all phases of operation. In
particular, the patented pumping system intelligently gauges the tension
needed to mechanically lift liquid out of the wellhead. By adjusting the power
needs of the pump on a real time basis, it can provide more than 20-30% of
energy, when compared to traditional oil pumps.
Harbin Electric's linear motor oil pump is certified by Heilongjiang
Science and Technology Bureau ("HSTB"), a branch of The Ministry of Science
and Technology of P.R. China, and China National Petroleum Corporation Daqing
Petroleum. A prototype of the Tower Type Oil Pump has been running at the
Second Extraction Factory of the Daqing Oilfield for one and a half years. The
prototype unit has met the functional design requirements on all technology
aspects.
Harbin Electric applied for five Chinese patents related to this product.
Three of these patents have been approved and the remaining applications are
pending approval. The three approved patent numbers are ZL200420018936.9,
ZL200420018931.6 and ZL200420018930.1.
Daqing Petroleum is the biggest petroleum corporation in China, producing
approximately 50 million tons of oil annually. The testing model of the Tower
Type Oil Pump was originally customized for Daqing Petroleum. With the testing
of the prototype complete, Daqing Petroleum has placed a purchase order for 13
units to be delivered by the end of 2007. These units are expected to sell at
an average price of USD $52,000.
Tianfu Yang, Chairman and Chief Executive Officer of Harbin Electric
stated, "We are pleased to introduce to the oil and gas industry this state of
the art vertical style oil pump driven by efficient linear motors. This
product development is an important milestone for our company as it further
positions Harbin Electric as a leader in industrial motor technology. Since we
began development of the Tower Type Oil Pump three years ago, our Research &
Development team has been actively involved in an effort to deliver a unique
solution which has culminated in several new patents for our business and has
developed another revenue channel for our company."
Mr. Yang concluded, "In the newly issued '11th Five-Year Plan for National
Economic and Social Development Program of China' (2006-2010), the Chinese
government explicitly focuses on the need to improve the efficiency of the
Country's resource use and mandates a reduction in energy consumption per unit
of GDP by 20%. This policy established by the Central Government of China is
encouraging for our business as our newly developed oil pump can provide
energy savings of over 25% when compared to traditional oil pumps. We believe
this product will add to our growth in the years ahead and supports our
corporate goal to introduce intelligent, efficient solutions to the global
industrial motor marketplace."
About Harbin Electric, Inc.
Harbin Electric, Inc. designs, develops and manufactures linear motors and
special electric motors. With proprietary technology and core patents, the
Company builds a wide array of customized linear motors and other special
motors for a variety of applications and industries. The Company currently
designs and supplies its motor products and systems to numerous end users
throughout the Chinese domestic market, as well as, to other industrial OEM
customers overseas. Industry applications for linear motors include oilfield
services, conveyor systems, factory automation, packaging equipment, as well
as mass transportation systems. The Company is based in Harbin, China along
with its wholly owned subsidiaries. The Company has approximately 270
employees with approximately 270,000 square feet of state-of-the-art
manufacturing space. For further information, please see our filings with the
Securities and Exchange Commission (http://www.sec.gov ).
Safe Harbor Statement
The actual results of Harbin Electric, Inc. could differ materially from
those described in this press release. Detailed information regarding factors
that may cause actual results to differ materially from the results expressed
or implied by statements in this press release may be found in the Company's
periodic filings with the U.S. Securities and Exchange Commission, including
the factors described in the section entitled "Risk Factors" in its annual
report on Form 10-KSB for the quarter ended December 31, 2006. The Company
does not undertake any obligation to update forward-looking statements
contained in this press release. This press release contains forward-looking
information about the Company that is intended to be covered by the safe
harbor for forward-looking statements provided by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are statements that
are not historical facts. These statements can be identified by the use of
forward-looking terminology such as "believe," "expect," "may," "will,"
"should," "project," "plan," "seek," "intend," or "anticipate" or the negative
thereof or comparable terminology, and include discussions of strategy, and
statements about industry trends and the Company's future performance,
operations and products.
