XI'AN, China, May 17 /Xinhua-PRNewswire/ -- China Green Agriculture, Inc. (OTC Bulletin Board: CGAG) ("China Green Agriculture" or "the Company"), a leading producer and distributor of organic humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced that it has obtained all necessary building permits and commenced construction of a new production line.
China Green Agriculture held its official groundbreaking ceremony for the project, a 40,000 ton production line, at the construction site adjacent to its current facilities on May 16, 2008. Due to strong demand for the Company's organic humic acid-based fertilizer products, China Green Agriculture has undertaken this strategic expansion which will increase production capacity from 10,000 tons per year to 50,000 tons per year. Like the Company's current manufacturing facilities, the expansion will be highly automated and computerized, allowing it to maintain a high degree of quality control and stable production costs.
"After months of preparatory work, we are very excited to commence construction of our expanded facilities," stated Mr. Tao Li, CEO of China Green Agriculture. "As we are currently operating at almost full capacity on our current 10,000 ton production line, this added production bandwidth will allow us to handle current customer demand and continue growing into the future. Given China Green Agriculture's role as an industry leader in R&D, we are eager to translate our core competency in fertilizer development into the product volumes desired by our customers."
About China Green Agriculture, Inc.
China Green Agriculture, Inc. produces and distributes humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., ("TechTeam"). TechTeam produces and sells approximately 10,000 metric tons of over 100 different kinds of fertilizer products per year. All of TechTeam's fertilizer products are certified by the PRC government as green products and suitable for growing Grade AA "green" foods, also known as green products that contain little or no chemical materials, as stated by the China Green Food Research Center. TechTeam's fertilizers are highly concentrated liquids which require an application of approximately 120 ml per mu per application. Its average customer has approximately four mu of land (one mu = .165 acres).
China Green Agriculture currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 27 provinces in the PRC. The leading five provinces by revenue for the fiscal year ended June 30, 2007 include Heilongjiang (9.99%), Guangdong (7.81%), Xinjiang (6.59%), Shandong (5.81%), and Henan (5.80%). For more information, visit http://www.cgagri.com .
Cautionary Statement
This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Green Agriculture undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
