TAIYUAN CITY, China, June 23 /PRNewswire-Asia/ -- Longwei Petroleum Investment Holding Ltd. (OTC Bulletin Board: LPIH), a leading China-based energy trading company operating in Shanxi Province, China, today announced its plans to complete construction on a 70,000 metric ton capacity oil storage facility in the city of Gujiao, a major industrial center located in Shanxi Province. The new facility will more than double the company's storage capacity to 120,000 metric tons and will potentially increase revenue by 100 percent within 24 months following completion. Longwei has already allocated approximately $23.8 million toward construction of the facility. The company hopes to complete the facility in 2009.
Longwei's Gujiao project has been approved by Shanxi Province Economic and Trade Committee and meets the regional development planning and national industrial policy requirements. To date, Longwei has completed the construction of the 70,000 metric ton oil tank area, including 11 new oil storage tanks. Remaining construction includes work on the private railway system, handling system and ancillary facilities. The new facility will allow Longwei to service customers quickly and efficiently in Gujiao and surrounding areas, expanding their market in Shanxi Province.
"The new facility is strategically located in Gujiao's fast-growing industrial zone, providing a prime marketplace for Longwei's oil," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "The coking plants and electric power plants of this region will certainly be an abundant market for us, and we are encouraged by the interest already being expressed for our products. We believe the industrial growth in Gujiao will make this an important oil base and create a good economic foundation for the future profitability of Longwei and the Gujiao oil depot," added Mr. Cai.
At present, mainland China ranks third in the world for finished oil products consumption. Experts predict that in 2010, China's finished oil products demand will be 185 million tons to 189 million tons and will grow 6 percent each year for the next 10 years.
Shanxi Province is the largest energy-producing region and the third largest consumer of petroleum products in China. In 2008, the province's road freight volume was the fifth highest in China. Currently, there are 4,692 gas stations servicing approximately four million cars in the province, providing a strong market for finished oil products. Gujiao, located west of Taiyuan City, is the energy center of coal, coke and electricity for Shanxi Province and for China. The power plants in Shanxi provide Beijing -- China's second largest city and capital -- with 30 percent of its electricity.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is one of the leading distributors/wholesalers of diesel, gasoline, kerosene and fuel oils in Taiyuan City, the capital of and largest city in Shanxi Province, P.R. China. Longwei Petroleum Investment Holding Limited purchases diesel, gasoline, fuel oil and kerosene from various suppliers. As an intermediary, the company seeks to earn profits by buying diesel, gasoline, fuel oil and kerosene at competitive prices and selling them to other wholesalers. In addition, Longwei also earns revenues by acting as a purchase agent where they charge an agency fee -- a fee which is charged to wholesalers who do not have a license to purchase directly from refineries. Further, the company owns a gas station located on its property where it generates additional profit and revenue. All of the company's operating facilities are located in Taiyuan City, China.
For further information on Longwei Petroleum Investment Holding Limited, please the company's website at http://www.longweipetroleum.com or http://www.RedChip.com . You may register to receive Longwei Petroleum Investment Holding Limited's future press releases or request to be added to the Company's distribution list by contacting Dave Gentry at 407-644-4256, Ext. 104.
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
For more information, please contact:
Investor Relations:
Dave Gentry
RedChip Companies, Inc.
Tel: +1-407-644-4256 x104
Email: Dave@redchip.com
Web: http://www.RedChip.com
