- New Contract Value Totals $4.4 Million -
BEIJING, Oct. 27 /PRNewswire-Asia/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG) ("China Fire" or "the Company"), a leading total solution provider of industrial fire protection systems in China, today announced the Company signed a new engineering, procurement, and construction ("EPC") contract worth approximately US$4.4 million with Indian National Thermal Power Cooperation Limited ("NTPC") for fire protection solutions.
Under the contract, China Fire will serve as a total solution provider for the Vindhyachal Super Thermal Power Station ("Vindhyachal"), Stage IV (2 x 500 MW) project, in the State of Madhya Pradesh, India. China Fire will be responsible for implementing the entire fire protection system for the project, including design, engineering, manufacture, procurement, transportation, construction, inspection, commissioning, technical guidance and maintenance. China Fire will also provide its UL-certified linear heat detectors to ensure protection and safety from fire hazards for the project's entire facility. The project is expected to be completed within the next two and a half years.
NTPC is the largest power company in India, operating 22 power stations with total installed capacity of 30,644 MW. NTPC is also diversified into hydro power, coal mining, oil and gas exploration, power distribution and trading, and nuclear power development. Vindhyachal, after the recently-completed Stage III, today has a total capacity of 3,260 MW and is the largest power station in India. At the completion of Stage IV, which is estimated to cost approximately INR 59.15 billion (approximately USD$1.27 billion), NTPC's Vindhyachal Super Thermal Power Station's total capacity should increase to 4,260 MW.
"We are very pleased to announce our recent contract win with NTPC, the largest power company in India. This contract win further demonstrates the success of our international expansion strategy and our strong competitive position in the global fire protection industry," commented Mr. Brian Lin, Chief Executive Officer of China Fire. "Although the Chinese government's recent limit on the iron and steel industry's capacity expansion may temporarily defer new contracts in our domestic market, we are excited about our momentum in the international markets. We believe India's enormously-unmet infrastructure needs will generate an abundance of new business opportunities across various industries. According to a report by PricewaterhouseCoopers, the Indian government will spend more than US$500 billion in new infrastructure projects, constructing and retrofitting the nation's power plants, iron and steel plants, airports, and transportation systems, which should create ample revenue prospects for China Fire in the Indian market."
"Furthermore, China Fire's UL-certified, proprietary linear heat detectors will provide us strong competitive advantages, enabling us to gain market share and better pricing in the Indian and other international markets. We are also encouraged by our growing market presence through our partnership in India, which has successfully developed strong client relationships and generated many new bid opportunities. We are confident that this contract win with NTPC combined with our previously announced $2.1 million contract win for BALCO Captive Power Plant in India can serve to further solidify our relationships and drive additional wins. We believe that our state-of-art technology, proprietary patent products, and market leadership will allow China Fire to expand its market presence and secure more contract wins in the near future, and ultimately to deliver strong and sustainable financial performance and generate more value for our shareholders," concluded Mr. Brian Lin.
About Indian National Thermal Power Cooperation Limited ("NTPC")
NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. It has emerged as an "Integrated Power Major", with a significant presence in the entire value chain of power generation business. NTPC ranked 317th in the "2009 Forbes Global 2000" ranking of the world's biggest companies. With a current generating capacity of 30,644 MW, NTPC has embarked on plans to become a 75,000 MW company by 2017.
NTPC contributed 29.25% of the total electricity generated in the country during 2006-2007 with a 20.71% share of total installed capacity of the nation including capacity and generation of joint venture companies. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53,000 MW, 10,000 MW through gas, 9,000 MW through hydro generation, about 2,000 MW from nuclear sources and around 1,000 MW from renewable energy sources.
About China Fire & Security Group, Inc.
China Fire & Security Group, Inc. (NASDAQ: CFSG), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .
Cautionary Statement Regarding Forward Looking Information
This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are 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, statements about industry trends and China Fire & Security Group's future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.
For more information, please contact:
China Fire & Security Group, Inc.
Shayla Suen, Investor Relations
Tel: +86-10-8441-7400
Email: ir@chinafiresecurity.com
ICR, Inc.
In China:
Michael Tieu or Bill Zima
Tel: +86-10-6599-7960 or +86-10-6599-7969
Email: michael.tieu@icrinc.com or william.zima@icrinc.com
In the U.S.:
Brian M. Prenoveau, CFA
Tel: +1-203-682-8200
Email: brian.prenoveau@icrinc.com
