Company to Supply $1.9M of Refractories to High-End Chinese Steel Mill
GONGYI, China, Jan. 23 /Xinhua-PRNewswire/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or the "Company"), a leading manufacturer in China of heat-resistant and energy-saving industrial materials, today announced that it has won four supply contracts valued at approximately $1.9 million, with Hanbao Iron & Steel Co., Ltd. ("Hanbao Steel"), the $1.6-billion joint venture between Baosteel Group and Handan Iron & Steel Group, China's two top steel makers.
Gengsheng's refractory products are primarily used in steel-making furnaces, industrial kilns and other high-temperature vessels, to maintain and extend their service life, minimize heat and mass loss during production and to reduce overall cost and improve productivity of steel-making. Under the contracts, Gengsheng will supply castables, bricks and other refractory materials to Hanbao Steel for use in its hot rolled strip units construction project. Gengsheng will also provide technical services for the installation and inspection of the materials supplied under each of the contract. The Hanbao Steel project is expected to be completed in the first half of 2008 and will have a production capacity of 4.6 million metric tons of high-end flat steel products annually.
"We are honored and excited to be a supplier to Hanbao Steel," said Mr. Shunqing Zhang, Chairman, CEO and President of Gengsheng, "especially in light of Hanbao Steel's presence in the high-end steel market, which primarily serves the automobile and shipping industries. We believe that the contracts are a testament to the superior quality and reliability of Gengsheng's products."
About China Gengsheng Minerals, Inc.
China Gengsheng Minerals, Inc. ("Gengsheng") develops, manufactures and markets a broad range of mineral-based, heat-resistant products, including monolithic refractories, refractory bricks, industrial ceramics and fracture proppants. Using customized solutions, Gengsheng's products are widely used in the iron and steel industry, such as 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 such as oil, gas and electricity. Founded in 1986 and based in China's Henan province, Gengsheng currently sells to over 160 customers in the iron, steel, glass, cement, aluminum and chemical businesses located in China and in 11 other countries, with exports accounting for about 10% of the revenue as of September 30, 2007. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company and its Chinese subsidiaries, 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 the Company's website at 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 effect of the Hanbao Steel contracts on the Company's ability to market its products and services; 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. Fulong Zheng
Investor Relations
China Gengsheng Minerals, Inc.
Tel: +86-371-6405-9846
Email: zflde@163.com
In the U.S.:
Valentine Ding
Investor Relations
The Global Consulting Group
Tel: +1-646-284-9412
Email: vding@hfgcg.com
