Total Annual Capacity Increases to 55,000 Metric Tons of Fertilizer
XI’AN, China, May 27 /PRNewswire-Asia/ -- China Green Agriculture, Inc. (NYSE Amex: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of 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 completed the installation and single-unit testing of its new production facility for green organic compound fertilizers in China. Located in Shaanxi Province, the facility is expected to begin production in August 2009.
China Green Agriculture’s new facilities include 27 vats for mixing ingredients and pharmaceutical grade, electronically calibrated measuring equipment spread over approximately 148,000 square feet. The new facility will increase the Company’s output level to 55,000 metric tons to meet with the growing demand for its green fertilizer products. Management expects the new facility to ramp up to full capacity within three years.
China Green Agriculture was the first company in China to build an entirely automated manufacturing system which precisely measures and mixes key ingredients to formulate its unique fertilizer products. While the Company’s current facility incorporates a high degree of automation, new automated equipment has been added in the new factory as well, which increases efficiency and further reduces reliance on manual labor. These advanced production techniques reduce waste which in turn reduces costs. In addition, China Green Agriculture currently only manufactures liquid fertilizer products; however the new facility is capable of producing both liquid and highly concentrated fertilizer.
"Based on our extensive distribution network, strong marketing efforts and sustained market demand for our green fertilizer products, we expect that our increased capacity will be quickly absorbed by the Chinese fertilizer market. This expansion will be China Green Agriculture’s growth driver for the fiscal year ending June 30, 2010, allowing us to meet our revenue and net income targets," commented Mr. Tao Li, Chairman and CEO of China Green Agriculture. "We have seen robust demand within the 27 provinces that we cover, and expect that trend to continue as the Chinese government seeks to increase farmers’ income and boost the growth of diversified crops, especially for organic food. By leveraging our new facility we are well positioned to gain further market share in China’s fertilizer market."
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 15,000 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 end user 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 three months ended March 31, 2009 are Shannxi (12.2%), Shandong (10.6%), Anhui (6.2%), Xinjiang (6.0%) and Henan (5.4%), which in total accounted for 40.5% of our total fertilizer sales from the sale of our fertilizer products. For more information, visit http://www.cgagri.com .
About HC International, Inc.
HC International is a focused and dedicated organization that acts as a premier information resource for institutional investors, hedge funds, buy and sell-side analysts, small to large brokerage firms and accredited investors. HC International helps their clients companies package their corporate information in a clear, concise and consistent manner while facilitating introductions to the right investor at the most opportune time. HC International maintains offices in the U.S. and China. For further information, please contact HC International directly, or visit the Company’s Web site at http://www.hcinternational.net .
Safe Harbor 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
For more information, please contact:
China Green Agriculture, Inc.
Ms. Ying Yang, Chief Financial Officer
Tel: +1-626-623-2575
Email: yangying@techteam.com.cn
OR
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Web: http://www.hcinternational.net
