BEIJING, Feb. 16 /Xinhua-PRNewswire/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC) ("China Agritech"), one of the largest liquid fertilizer manufacturers in China, announced that its new facilities in Chongqing City and Xinjiang Province are expected to begin production by March 2007 and May 2007 respectively.
After successfully building two new factories in Beijing and Anhui Province in 2006, China Agritech will continue expanding capacity in new regions of China. Chongqing is the largest city in southwestern China and one of the country's most important agriculture areas with about 1.4 million hectares of arable land. The Chongqing factory spans 6,000 square meters and has initial production capacity of 2,000 metric tons of liquid organic fertilizer per year. The facility will produce China Agritech's newly introduced "Green Vitality" product. Items sold from this factory will be distributed through 10 company-owned sales offices covering the Sichuan, Yunnan, Guizhou Provinces.
The Xinjiang factory, located in Urumqi city in Xinjiang Province, northwestern China, has initial production capacity of 2,000 metric tons of liquid organic fertilizer per year. Xinjiang Province has the largest amount of arable land in China. China Agritech plans to begin production by May, which corresponds to the beginning of the main agriculture season. The facility in Xinjiang will primarily supply large state-owned farms through its wholesale channel as well as distributors in Russia and western Asia.
"With the planned addition of these two production facilities, China Agritech's production capacity will be 13,000 metric tons per year, which is a 50% increase in capacity from the 9,000 metric tons at the end of 2006 and a 160% increase from our capacity at the end of 2005," commented Mr.Yu Chang, President and CEO of China Agritech. "We are also pleased with the progress we have made in establishing our sales and distribution channels. Our distribution network, which supports our Beijing, Anhui, Chongqing and Xinjiang factories, includes 30 sales offices, 600 sales agencies, and 6,000 points of retail presence at the village level. We also have 95% of our retail presence established at this time and expect to be in all our target retail markets by the end of February."
About China Agritech Inc.
China Agritech is engaged in the development, manufacturing and distribution of organic liquid compound fertilizers and related products in the People's Republic of China. The company has developed proprietary formulas that provide a continuous supply of high－quality agricultural products while maintaining soil fertility. The company sells it products to farmers located in twelve provinces of China including: Heilongjiang, Hebei, Liaoning, Jilin, Shandong, Inner Mongolia, Henan, Sichuan, Guangdong, Xinjiang, Yunnan and Guizhou. For more information visit http://www.chinaagritechinc.com .
Safe Harbor Statement
The statements contained in this Release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation, statements regarding the Company's expectations, hopes, beliefs, intentions or strategies regarding the future. These forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements such as the inability to protect the proprietary formula, the price of raw materials, any liabilities from unknown harmful effects of the product, and adverse weather conditions. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For more information, please contact:
CCG Elite Investor Relations
Crocker Coulson, President, or
Leslie J. Richardson
Tel: +1-310-231-8600
Email: Crocker.coulson@ccgir.com
