GONGYI, China, March 10 /PRNewswire-Asia-FirstCall/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has signed a refractory material supply contract with Jiangsu Sha Steel Group Co., Ltd.'s ("Sha Steel") Zhangjiagang-based subsidiary. Total value of the contract is $1.2 million.
Pursuant to the contract, Gengsheng will ship refractory materials for reheat furnaces used in Sha Steel's hot rolling mill in Zhangjiagang, Jiangsu Province. Sha Steel is China's largest non-state-owned steel producer by output. Founded in 1975 and headquartered in Zhangjiagang, Sha Steel has a total annual capacity of 24 million tons of rolled steel products, according to its Website.
"I'm pleased with our new supply contract with one of China's biggest steel manufacturers," said Mr. Shunqing Zhang, Gengsheng's Chairman and CEO. "Inventories declined in late 2008, but we now are seeing Chinese steel mills quickly re-stocking their products, especially hot rolled steels for infrastructure materials designed for railroads and highways. We are hopeful that the Chinese stimulus package will yield more opportunities like this for us to supply to large steel mills that benefit from this Chinese government policy."
About Jiangsu Sha Steel Group Co., Ltd.
Jiangsu Sha Steel Group Co., Ltd. ("Sha Steel") is the largest steel maker in China of the Electric Arc Furnace (EAF) process and of specialty steel. It is also the key enterprise of Jiangsu Province, and China's largest non-state-owned steel company. Sha Steel has a total asset of over RMB 100 billion and 26,700 employees. Presently it has an annual production capacity of 22.3 million tons of iron, 27.2 million tons of steel, 23.9 million tons of rolled products and 1 million tons of stainless steel plates.
In 2008, Sha Steel ranked 36th among the top 500 Chinese industrial enterprises, 12th among the top 500 Chinese manufacturing enterprises and 2nd in all Chinese non-state-owned enterprises.
About China Gengsheng Minerals, Inc.
China Gengsheng Minerals, Inc. ("Gengsheng") develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industry 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.
For more information about the Company, please visit http://www.gengsheng.com .
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 projected output for the term of the supply contract; 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:
Mr. Shuai Zhang
Investor Relations
China Gengsheng Minerals, Inc.
Tel: +86-371-6405-9846
Email: gszs@gengsheng.com
In the U.S.:
Valentine Ding
Investor Relations
Grayling Global
Tel: +1-646-284-9412
Email: vding@hfgcg.com
