DONGBANG TOWN, China, Nov. 10 /PRNewswire-Asia-FirstCall/ -- Sutor Technology Group Limited (the "Company" or "Sutor") (Nasdaq: SUTR), a leading provider of fine finished steel products used by steel fabricators and other applications in China, today announced the signing of an agreement to acquire Ningbo Zhehua Heavy Steel Pipe Manufacturing Co., Ltd. ("Zhehua") for US$6.62 million in a cash transaction. Sutor expects to close the transaction as soon as the transfer of the equity interest in Zhehua is approved by local authorities.
Located in Ningbo, China and incorporated in 2004, Zhehua produces and sells longitudinally welded steel pipes and spiral welded steel pipes with annual capacity of 400,000 metric tons. Zhehua's products are used for oil and natural gas transportation, construction piling, and public facilities (water supply, gas and sewage) among other industries. Zhehua has received the certification of the American Petroleum Institute (API), which is recognized as one of the most strict industry qualifications.
Chen Lifang, chairman and CEO of Sutor, said, "We are excited about the acquisition of Zhehua and expect the acquisition will be accretive to our earnings and broaden our product offerings. Sutor aims to establish an integrated model for R&D, production, processing and logistics in the upcoming years. We believe Zhehua adds to our competitive advantage of a vertically integrated producer in all aspects of the fine finished steel industry. We hope this acquisition marks the first step in a series of value-adding transactions."
About Sutor Technology Group Limited
Sutor (Nasdaq: SUTR) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com .
Forward-Looking Statements
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products, our expectations regarding the continued growth of the steel market, expectations of the benefits to be derived from this acquisition, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These forward-looking statements are not guarantees of future performance. A number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov . The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed
forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For more information, please contact:
In China:
Mr. Jason Wang
Sutor Technology Group Limited
Tel: +86-512-5268-0988
