KAIFENG, China, Feb. 12 /PRNewswire-Asia/ -- China Valves Technology, Inc. (Nasdaq: CVVT) ("China Valves" or the "Company"), a leading metal valve manufacturer with operations in the People's Republic of China (the "PRC"), today announced that that the Company has signed a strategic cooperation frame agreement with Dongfang Electric Corporation (Dongfang Electric), the largest manufacturer of power generating equipment and contractor for power station projects in the world.
In the first-ever strategic relationship between a major Chinese valve manufacturer and a leading Chinese producer of power generating equipment, China Valves and Dongfang Electric have agreed to establish a joint R&D center for the development of high-end valves that Dongfang Electric currently imports, in addition to entering into a full service agreement. Under the agreement, China Valves will supply Dongfang Electric with custom design services for specialty valves required in its power generation projects, manufacture the valves, and install and maintain them, providing Dongfang with a complete suite of valve-related services. The Company already supplied valves worth approximately $6 million to Dongfang Electric in 2009, and expects this strategic alliance to increase orders significantly. The Company anticipates its first orders from Dongfang Electric under this agreement in the first quarter of 2010.
"With China's continued growth in demand for electrical power, we are excited to have formed this alliance with one of the top players in the power generating equipment and contracting industry," said Mr. Siping Fang, Chairman and CEO of China Valves. "Dongfang purchased more than $123 million worth of valves last year, and this arrangement will give us the opportunity to provide them with a full range of valve-related services in addition to world class valves, thereby increasing our exposure to new realms of the important power generation industry."
Dongfang Electric (1072.HK; 600875.SS) is a state-owned enterprise located in Chengdu, Sichuan Province. Established in 1984, it is engaged in manufacture and sale of equipment for large hydropower stations, thermal power stations and nuclear power stations, as well as contracting power station projects, including design, manufacture, supply, technical service of the generating equipment, and turnkey projects for power stations. It accounts for more than 30% of the domestic main engine market of large thermal power stations, and up to 40% of the hydropower market. China's Central Party also considers it one of the most significant state-owned enterprises relating to China's national security and economic welfare.
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., Tai Zhou Tai De Valve Co., Ltd., Yangzhou Rock Valve Lock Technology Co., Ltd., and Able Delight (Changsha) Valve Co., Ltd., is engaged in development, manufacture and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best known brand names in China's valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products by extensive research and development and owns a number of patents. It enjoys significant domestic market shares and exports to Asia and Europe. For more information, visit http://www.cvalve.com
Safe Harbor Statements
Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise. This press release was developed by China Valves, and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company's stock. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
For more information, please contact:
China Valves Technology, Inc.
Ray Chen, VP of Investor Relations
Tel: +1-650-281-8375
+86-139-2527-9478
Email: raychen@cvalve.net
Web: http://www.cvalve.com
CCG Investor Relations
Linda Salo, Sr. Financial Writer
Tel: +1-646-922-0894
Email: linda.salo@ccgir.com
Crocker Coulson, President
Tel: +1 646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
