omniture

China Green Agriculture to Start Production at Gufeng's New 200,000-Metric-Ton Production Line on April 7, 2011

2011-04-07 20:03 1939

XI'AN, China, April 7, 2011 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or "the Company"), a producer and distributor of humic acid ("HA") based compound fertilizers, blended fertilizers, organic compound fertilizers, mixed organic-inorganic compound fertilizers , slow released fertilizers and highly- concentrated water soluble fertilizers through its wholly owned subsidiaries in China, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong") and Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng"), today announced that Gufeng's new production line with an annual capacity of 200,000 metric tons ("MT") of fertilizer will begin production on April 7, 2011.

This state-of-the-art automated fertilizer production line relies on a centralized production control system to produce various formulated humic acid-based organic-inorganic compound fertilizers, chlorine-based and urea-based compound fertilizers in a highly flexible way. It is the most cost effective and efficient production line at Gufeng and has been designed with particular attention to ergonomics and safety to enhance working conditions.  Highly efficient air conditioning units and a physical separation between administrative and highly automated production areas reduce workers' exposure to hazardous materials.

The new production line increases Gufeng's annual production capacity by 67% from 300,000 to 500,000 MT and the Company's total annual production capacity by 56% from 355,000 to 555,000 MT. For the fiscal year ended June 30, 2010, the Company sold 22,835 MT of highly-concentrated fertilizers. After acquiring Gufeng in July 2010, the Company's annual production capacity increased by 545% from 55,000 MT to 355,000 MT and its sales volume jumped by 1,926% to 150,655 MT in the first half of fiscal year 2011 from 7,435 MT for the same period in fiscal 2010.

"I am very pleased that Gufeng's capacity expansion has proceeded successfully on schedule. Our expanded capacity will enable us to meet rising market demand for compound fertilizers and help us meet our revenue and net income guidance for the fiscal year ended June 30, 2011," commented Mr. Tao Li, Chairman and CEO of China Green Agriculture, "the Company's ongoing and future capacity expansions are critical steps to achieve our recently announced ten-year growth plan. Under this plan, we expect to build annual revenues to at least $750 million by 2015 and at least $3 billion by 2020."

About China Green Agriculture, Inc.

The Company mainly produces and distributes humic acid-based compound fertilizers and other varieties of compound fertilizers through its wholly-owned subsidiaries, Jinong and Gufeng. Jinong produces and sells 146 different kinds of fertilizer products, all of which are certified by the PRC government as Green Food Production Materials, as stated by the China Green Food Research Center. Jinong currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 21 provinces, four autonomous regions and three central-government-controlled municipalities in the PRC. For the three months ended December 31, 2010, the top five provinces (or municipalities) of fertilizer sales accounted for 29.2% of total revenues. The five provinces (or municipalities) and their respective percentage contribution to total fertilizer revenues were Hebei (7.0%), Jilin (6.8%), Liaoning (6.4%), Shaanxi (4.8%) and Beijing (4.1%). Jinong had 598 distributors in China. Gufeng had 157 distributors including some large state-owned enterprises. The recently acquired company, Gufeng and its wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd., are Beijing-based producers of compound fertilizer, blended fertilizer, organic compound fertilizer and mixed organic-inorganic compound fertilizer. Gufeng produces and sells over 300 different kinds of fertilizer products, and has over 150 distributors nationwide. For more information, visit http://www.cgagri.com. The Company routinely posts important information on its website.

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, the Company's execution of its recently announced ten-year growth plan and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor Statement and the risk factors detailed in the Company's reports filed with the SEC. 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, except as required by applicable law or regulation.

For investor and media inquiries, please contact:

 

 

China Green Agriculture, Inc.

 

 

Mr. Ken Ren, Chief Financial Officer

 

 

Tel:  +1-530-220-3026

 

 

Email: kenren@cgagri.com

 

 

 

 

Christensen

 

 

Rene Vanguestaine

 

 

Tel:  +1-646-209-2574 / +852-6686-1376

 

 

Email: rvanguestaine@christensenir.com

 

 

 

 

Kathy Li

 

 

Tel: +1-480-614-3036

 

 

Email: kli@christensenir.com

 

 

 




Source: China Green Agriculture, Inc.
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