- New contracts total $25 million in revenue -
DONGBANG TOWN, China, Jan. 7 /PRNewswire-Asia/ -- Sutor Technology Group Limited (the "Company", "Sutor") (Nasdaq: SUTR), a leading private manufacturer of fine finished steel products used by steel fabricators and other applications, today announced that it has signed four purchase agreements with four steel distributors located in Middle and Eastern China for 31,800 metric tons and an aggregate contract amount of approximately US$25 million based on current market prices, if fully performed.
The terms of the contract are for one year beginning on January 1, 2010. The products sold through the purchase agreements will be priced at the market at the time of shipment. Sutor typically schedules order production after receiving a 30% down payment for each order. Final delivery will take place only after receiving the remaining 70% of the total order amount. The Company's collection policy is an effort to minimize the risk of bad debt and promote healthy cash flow.
Under the contracts, Sutor will supply a total of 28,800 metric tons of hot-dip galvanized steel coils (HDGI) and 3,000 metric tons of pre-painted galvanized steel coils (PPGI) to Hubei Foreign Economic Relations and Trade Investment & Management Co., Ltd. and three other steel distributors. The four distributors are existing customers of Sutor and have purchased and distributed the "Huaye" brand of fine finished steel products since early 2008. "We are pleased to announce our recent contracts wins with long-term partners. We believe large size orders with existing customers demonstrate our commitment to high quality, technologically innovative products and superior customer service," said Lifang Chen, Chairwoman and CEO of Sutor.
Ms. Chen added, "We will continue to extend Sutor's market share with our expanding national sales channels and market driven R&D and we continue to improve our 'Huaye' brand recognition domestically and overseas through partnering with a variety of steel distributors. We believe these measures will help grow our business, diversify our customer base and offset potential economic uncertainties.
"As the result of stimulus-related spending on high-end manufacturing industries and environmentally friendly products, we remain optimistic about our performance in calendar 2010 thanks to our proactive R&D initiatives which are in line with the Chinese government's encouragement to develop energy-saving materials."
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, 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 expected revenues from the new contracts, our expected financial performance in 2010 and future strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the continued growth of the steel 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
