Contract Expected to Increase Annual Linen Fabric Sales Volume by 400,000 Meters
LANXI COUNTY, China, April 15 /PRNewswire-Asia/ -- China Linen Textile Industry, Ltd. (OTC Bulletin Board: CTXIF) ("China Linen"), a China-based company engaged in the production and sale of linen yarn and various types of linen fabric, today announced that its subsidiary, Heilongjiang Lanxi Sunrise Linen Textile Industry Co., Ltd. ("Sunrise Linen"), has signed a renewed multi-year distribution agreement with a leading, Italy-based seller and distributor of linen, PETA D.O.O.R.F. DIAMAS S.R.L.
Under terms of this agreement, the Italian-based distributor will exclusively market and distribute China Linen's range of linen fabrics in a well-known area in Italy. The long-term contract, effective in March 2010 and extending through 2013, is expected to increase the annual sales volume for linen fabric from this company by approximately 20%, or 400,000 meters.
In 2008, Italy's apparel market was worth an estimated $18.1 billion, and the market is expected to grow at a five-year compound annual growth rate (CAGR) of 4%. China is the world's largest exporter of apparels and textile products globally. According to China General Administration of Customs, China's total exports of textile products and clothing for 2008 amounted to $185.2 billion.
Mr. Gao Ren, chairman and president of China Linen, commented: "This sales agreement is an important step toward expanding our product brand in the European market and further strengthening our presence in the lucrative Italian fabric market. The renewed agreement also demonstrates our continued commitment to building long-term and stable relationships with our clients and solidifying our position in the Italian market. In 2009, we exported millions of linen fabric to Italy, and we will continue to capitalize on opportunities in this market."
For the full fiscal year 2009, China Linen's total textile exports were valued at $17.72 million, and were growing at a CAGR of 28.9 percent. The company exports approximately 60% of its production to Europe, North America, the Middle East and South America with the remaining sold in China. China Linen's main products include linen yarn, linen gray fabric, linen/cotton interwoven fabric, linen/rayon interwoven fabric and other linen products. The company's top customers' markets include China, Italy, the United States, Brazil, Belgium, Spain and Greece.
About China Linen Textile Industry, Ltd.
China Linen Textile Industry, Ltd. (http://www.china-linen.net/en/main.asp ), is principally engaged in the production and sale of linen yarn and various types of linen fabric. The Company is also involved in consultation and R&D related to linen technology and linen products. The Company carries on all of its business activities through its subsidiary, Heilongjiang Lanxi Sunrise Linen Textile Industry Co., Ltd. ("Sunrise Linen"), established in June 2002 and located in Lanxi County, the "Homeland of Flax in China," near Harbin City in China. Sunrise Linen has one yarn-spinning factory and two fabric weaving factories in its 28,000 square meters of building area with a staff of 1,500 and 310 sets of world-class, advanced producing machinery. Annual production capacity totals approximately 1,600 tons with 50 different types of yarn and 8 million meters of fabric with 110 types. Approximately 60 percent of its products are exported to more than 10 countries.
Forward-looking statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
For more information, please contact:
China Linen Textile Industry, Ltd.
Mr. James Shaofeng Qi
Tel: +86-139-1093-4932
RedChip Companies, Inc.
Jon Cunningham
Tel: 1-800-733-2447 x107
Email: info@redchip.com
