GONGYI, China, Sept. 14 /PRNewswire-Asia/ -- China GengSheng Minerals, Inc. (AMEX: CHGS), a leading China-based high-tech industrial materials manufacturer producing heat resistant, energy efficient materials for a variety of industrial applications, today announced that the Company has commercially launched its fine precision abrasive product, and has begun shipping product under its first three supply contracts. These initial sales are to companies in solar-related industries. Shipments to these customers commenced in August 2010 and are expected to continue through the fourth quarter. The contracts carry a total value of approximately $500,000, with $150,000 being realized in the third quarter of 2010.
Fine precision abrasives, made from green silicon carbide ("SiC"), are ultra-fine, high-strength pellets with uniform shape, designed for use in surface polishing and precision slicing of solar panels. China GengSheng's design capacity is 20,000 metric tons annually.
"The launch of our fine precision abrasives product represents a significant milestone for China GengSheng Minerals, as it expands our reach into important new markets," said Mr. Shunqing Zhang, China GengSheng's Chairman and Chief Executive Officer, "The initial focus of our sales efforts will be on the solar industry and related sectors, as we believe these markets present the greatest near-term growth potential. In the longer term, we plan to expand our fine precision abrasives product family to include applications in surface polishing, which will address the needs of industries such as semiconductors, electronics and industrial equipment."
"Our strong IP portfolio and concerted R&D effort in fine precision abrasives provide China GengSheng Minerals a significant competitive advantage in an area that we believe presents a tremendous growth opportunity for the Company as the market begins to mature. Fine precision abrasives enjoy higher margins than our core refractories and fracture proppant products, and we are confident in our ability to compete in this sizeable market," Mr. Zhang concluded.
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.
For more information about the Company, please visit http://www.gengsheng.com .
To be added to the Company's email distribution for future press releases, please send your request to gengsheng@tpg-ir.com .
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, 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.
Investor Relations
Mr. Shuai Zhang
Email: gszs@gengsheng.com
Tel: +86-135-2551-0415
