Receives Approximately $440,000 Product and Design Services Contract from Tangshan Hongwei Steel Co.
GONGYI, China, June 22 /PRNewswire-Asia/ -- China GengSheng Minerals, Inc. (NYSE AMEX: CHGS), a leading China-based high-tech industrial materials manufacturer producing heat resistant, energy efficient materials for a variety of industrial applications, today introduced new monolithic refractory products and design technology for the development of slide-rail heating furnaces, a cost-effective, energy efficient alternative to traditional water cooling pipe-based technology. China GengSheng estimates that slide-rail heating furnaces reduce energy consumption by approximately 10-15% compared with traditional furnace designs.
In conjunction with the launch of this new technology, China GengSheng has received refractory and design service orders valued approximately $440,000 from Tangshan Hongwei Steel Co., Ltd. ("Hongwei") for the upgrade and remodel of Hongwei's existing water pipe cooled heating furnaces. This project was commenced in the second quarter of 2010, and is expected to be concluded in the third quarter.
"Our partnership with Hongwei, as a materials supplier and design partner, supports our strong position in the refractories market and speaks for our expertise in industrial technology," said Mr. Shunqing Zhang, China GengSheng's Chairman and Chief Executive Officer, "We are proud to be the first provider of the new refractory products, as well as the technology and know-how required for the construction of the advanced heating furnaces. We believe that our partnership with Hongwei and the new furnace technology provide us with a significant opportunity to grow our refractories and design service business as additional steel manufacturers recognize the operational benefits and cost savings associated with slide-rail heating furnace technology. We remain committed to generating additional value for our customers and further advancing our market leadership through continued technological innovation."
About China GengSheng Minerals, Inc.
China GengSheng Minerals, Inc. ("GengSheng") develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, GengSheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, GengSheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and other countries. GengSheng conducts business through GengSheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan GengSheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd., Henan GengSheng Micronized Powder Materials Co., Ltd, Guizhou SouthEast Prefecture Co., Ltd., GengSheng New Materials Co., Ltd, and Henan GengSheng High Temperature Materials Co., Ltd.
Note Regarding Forward-Looking Statements
This filing contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties, certain assumptions and factors relating to the operations and business environments of China GengSheng Minerals, Inc. and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Although China GengSheng Minerals, Inc. believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to its management, China GengSheng Minerals, Inc. cannot guarantee future results or events. China GengSheng Minerals, Inc. expressly disclaims a duty to update any of the forward-looking statement
For more information about the Company, please visit http://www.gengsheng.com .
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For more information, please contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: +1-212-481-2050
Email: GengSheng@tpg-ir.com
China GengSheng Minerals, Inc.
Ms. Wendy Sun
Finance Manager and Investor Relations
Tel: +86-159-3870-8666
Email: gswendy@gengsheng.com
Mr. Shuai Zhang
Investor Relations
Email: gszs@gengsheng.com
