- Commercial Production Expected to Begin in Anhui Province in April 2009 -
BEIJING, March 16 /PRNewswire-Asia/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC) ("China Agritech" or the "Company"), a leading national liquid and granular organic compound fertilizer manufacturer and distributor in China, today announced that it has completed the construction and testing of its first facility for granular organic compound fertilizers in China. Located in Anhui Province, the facility is expected to begin production in April 2009.
The new granular production line, which is housed in a new plant next to the Company’s existing liquid organic fertilizer factory, has a 100,000 ton annual production capacity. It recently obtained the production license and fertilizer registration from the local government in Anhui Province, which also granted the Company exemption from the Value-Added Tax (VAT) for granular organic fertilizers.
Previously, the Company was making its granular products through a
third-party manufacturer in Eastern China.
“We are excited that our first granular fertilizer production base is strategically located in Anhui Province, one of China’s biggest fertilizer markets,” Mr. Yu Chang, Chairman and CEO of China Agritech, said. “Being in one of China’s biggest grain-producing regions with 50 million farmers and abundant low-cost labor enables us to service our customers in a quicker and more economical way. In addition, the local government has always supported the growing use of organic fertilizers, which surpass chemical fertilizers in safety, efficacy and environmental friendliness. With the new Anhui plant, we could reposition our existing Beijing plant as an R&D center to focus on the development of the core ingredients to supply our granular production bases internally.”
Mr. Chang continued, “Since the launch of our proprietary granular products in late 2008, we have seen robust demand in Anhui and surrounding regions, and expect that trend to continue as the Chinese government seeks to increase farmers’ income and boost the growth of diversified crops, especially for organic food.”
About China Agritech, Inc.
China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.
For more information about the Company, please visit http://www.chinaagritechinc.com .
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions regarding statements, including but not limited to, the continued demand for China Agritech’s products, China Agritech’s ability to sustain growth for the balance of the year and China Agritech’s ability to generally meet all of its objectives. Such
forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
For more information, please contact:
In China:
Mr. Kelviz Lim Kok Siak
Investor Relations
China Agritech, Inc.
Tel: +86-10-5962-1220
Email: kelviz@chinaagritech.com
In the U.S.:
Mr. Kevin Theiss / Mr. Valentine Ding
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
vding@hfgcg.com
