SHANGHAI, China, Oct. 21 /Xinhua-PRNewswire/ -- China Precision Steel (Nasdaq: CPSL), a niche precision steel processing Company principally engaged in producing and selling high precision, cold-rolled steel products, today announced that its market share is expanding as the Company is receiving increased orders from manufacturers in China and Africa.
"We are experiencing strong demand for our high precision, cold-rolled steel products despite the current global slowdown. Our production facilities remain fully occupied and we continue to negotiate new contracts with manufacturers who are switching from higher cost imports," commented Dr. Wo Hing Li, China Precision Steel's Chairman and CEO. "While we are experiencing a slight reduction in orders from some customers who are reducing inventories and orders from markets such as Southeast Asia are slowing as a result of the global economic slowdown, we believe we are well positioned for continued growth as we have a broad and diversified customer base and are not dependant on any one industry. Our overall business remains healthy as we are increasing our share of the total market for high-precision, cold-rolled steel products."
China Precision Steel's market share in China is expanding as domestic customers are switching from higher cost international producers in an effort to reduce production costs. The Company offers the same quality products at a lower cost than international precision steel producers. Moreover, China Precision Steel's close proximity to domestic customers reduces delivery times and transportation costs as well as enables regular in-person meetings to discuss product specifications. Approximately 85% of high precision steel products in China today are supplied by overseas steel mills located in Japan, Korea, the EU, and the United States creating a unique opportunity for China Precision Steel to capture market share from higher cost international producers.
One of China Precision Steel's new customers who previously relied solely on imported precision steel products is Nanjing Valeo Clutch Co. Ltd (NVCC). China Precision Steel recently signed an agreement to manufacturer high carbon, cold-rolled clutch discs for NVCC and has received specifications to supply test samples of a second clutch disc design. NVCC was established in 1997 through a joint venture between Valeo and Yuejin Motor Corporation, China's main manufacturer of utility vehicles, to produce clutches.
About China Precision Steel
China Precision Steel, Inc., a steel processing company, engages in the manufacture and sale of high precision cold-rolled steel products in China. The company produces and sells precision, ultra-thin and high strength
cold-rolled steel products with thicknesses ranging from 7.5 mm to 0.03 mm. It also provides heat treatment and cutting and slitting of medium and high carbon hot-rolled and cold-rolled steel strips. The company's precision products are primarily used in the manufacture of automobile parts and components, steel roofing, plane friction discs, appliances, food packaging materials, saw blades, textile needles, microelectronics, and containers. It sells its products in China, Ethiopia, Nigeria, Thailand, Indonesia, and the Philippines. China Precision Steel was incorporated in 2002 and is headquartered in Sheung Wan, Hong Kong. Additional information can be found at the company's website http://chinaprecisionsteelinc.com .
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." 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. You 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 ( 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 further information, please contact:
China Precision Steel
Dan Carlson
Email: DanielCarlson@comcast.net
Elite IR
Leslie J. Richardson
Partner
Tel: +852-3183-0283
Email: leslie.richardson@elite-ir.com
