CHANGSHU, China, May 4 /PRNewswire-Asia/ -- Sutor Technology Group Limited (the "Company", "Sutor") (Nasdaq: SUTR), a leading China-based manufacturer and distributor of high-end fine finished steel products and welded steel pipes used by a variety of down-stream applications, today announced it had signed contracts with Hyundai-KIA Group ("Hyundai-KIA"), Baosteel Group Corporation ("Baosteel") and Nantong GangZhen Steel Strip Ltd. ("Nantong GangZhen").
Under the contracts, Sutor will offer acid pickling steel processing services to Hyundai-KIA, Baosteel and Nantong GangZhen with an annual processing amount of 36,000 metric tons, 48,000 metric tons, and 42,000 metric tons, respectively. The processed steel products will be directly used in auto manufacturing. Hyundai-KIA is one of the largest carmakers in the world; Baosteel is the largest publicly traded steel company in China and one of the top steelmakers in the world. According to industry sources, Baosteel controls approximately half of the domestic market for auto sheets.
"The new contracts represent a significant progress for the Company as it continues to expand its customer base and gain market shares in the fastest growing segment of the economy," said Ms. Lifang Chen, Chairwoman and CEO of Sutor. "China is becoming the world's largest auto market and the demand for automobiles is expected to continue to grow in the coming years as a result of the country's growing economy and increasing affluence of the middle-class. The contracts with the world leading auto and steel firms including Hyundai-KIA and Baosteel demonstrate Sutor's strong industry position and will help us capitalize on the compelling market opportunities ahead."
"In addition, we are excited about the future strategic benefits of this kind of contracts," Ms. Chen continued. "By providing toll processing services, Sutor can more effectively use its working capital, will not have the risks associated with the fluctuations in the costs of raw materials, and these type of strategic projects allow better production planning and more consistent revenues. As the Chinese government recently halted construction of new acid pickling production lines due to environmental protection concerns, Sutor will strengthen its position in the acid pickling processing business by taking advantage of its existing high acid pickling capacity with full compliance with relevant environmental protection standards."
About Sutor Technology Group Limited
Sutor (Nasdaq: SUTR) is one of the leading China-based manufacturers and distributors of high end fine finished steel products and welded steel pipes used by a variety of down stream applications. 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,
cold-rolled steel and welded steel pipe products. 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 contracts with Hyundai-KIA, Baosteel and Nantong GangZhen, our expected expansion into the automobile industry, our expectations regarding the economic benefits from these contracts, our future 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 and automobile market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, 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:
Mr. Jason Wang
Sutor Technology Group Limited
Tel: +86-512-5268-0988
Web: http://www.sutorcn.com
Mr. Brian M. Prenoveau, CFA
ICR, Inc.
Tel: +1-203-682-8200
