Contract valued at RMB 3 million (US$0.44 million)
GONGYI, China, Jan. 20 /PRNewswire-Asia/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng"), a high-tech industrial materials products company in China with products capable of withstanding high temperatures, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has entered into an exclusive sales agreement with Junfu Sheng Precision Co., Ltd. to market and sell Gengsheng's fine-precision abrasives products in the eastern part of Guangdong Province. Under terms of the agreement, effective January 10, 2010, Junfu Sheng will market and sell a minimum of RMB 3 million (US$0.44 million) worth of the company's specialty abrasives within 12 months of the agreement. Products to be marketed include fine precision abrasives used for polishing solar panels and precision equipments and for wire-slicing silicon wafers in the solar industry.
Mr. Shunqing Zhang, Chairman and CEO of China Gengsheng, stated: "This agreement represents the first sales contract of our channel strategy, which is to find more abrasives dealers in different areas in China and to focus our marketing onto large-scale customers in the solar industry. We are talking with more distributors all across China and will select them according to their customer base, scale, experience and reputation, among other standards, in order to aggressively expand our abrasives business."
China Gengsheng opened its fine-precision abrasives factory in April 2009 and began first commercial production of abrasives during the fourth quarter. Fine-precision abrasives are a green silicon carbide-based micro-powder used to cut silicon wafers. With an annual production capacity of 20,000 metric tons, the company's new state-of-the-art facility is one of the largest silicon carbide manufacturing facilities in mainland China.
The market for the abrasives in mainland China and Taiwan is estimated at US$2 billion, and the market for the solar-related abrasive products in China is US$750 million. Fine precision abrasives sell for an average of US$4,200 per metric ton.
About China Gengsheng Minerals, Inc.
China Gengsheng Minerals, Inc. ( http://www.gengsheng.com ) develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics, fracture proppants, and fine-precision abrasives. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industries as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Gengsheng Minerals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the Company's ability to meet its obligations under its full-service contracts; the profit margin, timely payments and other economic benefits the Company expects to receive under such contracts, the Company's ability to maintain its customer relations; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
In China:
China Gengsheng Minerals, Inc.
Ms. Wendy Sun
Finance Manager and Investor Relations
Tel: +86-159-3870-8666
Email: wendyshure@gmail.com
Mr. Shuai Zhang
Investor Relations
Tel: +86-135-2551-0415
Email: shuai298@126.com
In the U.S.:
RedChip Companies, Inc.
Mr. Dave Gentry
President
Tel: +1-407-491-4498
Email: info@redchip.com