- Company Unveils the New Product at Baosteel in Shanghai -
GONGYI, China, Sept. 22 /PRNewswire-Asia/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has developed a new refractory product for its steel company customers to cut energy costs and increase efficiency during steel-making.
The Company held a teach-in last week on the new, high-performance, thermo-insulating and light castables at China's largest steel and iron conglomerate, Shanghai Baosteel Group Corporation ("Baosteel"), where Gengsheng's CEO, Vice President of Product Development and technology adviser shared product specifications and testing results with Baosteel's directors of the procurement department, the technology department and various other managers and in-house experts.
Traditionally, Chinese steel mills use a dense castable as the back lining in heating furnaces to maintain the high temperature required for steel-making. The dense castable is bulky, heavy and consumes a large amount of electricity while in use. Gengsheng's proprietary light castable is more than two times lighter than the traditional kind while exhibiting better durability and contraction-resistance under high temperatures. The average price for Gengsheng's light castable is expected to be more than twice that of the traditional, dense one and the gross margin is also expected to be about 30% higher. The new product has now been officially accepted for trial use at Baosteel.
"After introducing our pressed bricks last year, we are now proudly showing a new type of functional refractory product to our steel customers," said Mr. Shunqing Zhang, Chairman and CEO of Gengsheng. "We are excited about this new product's market potential, as all furnaces in steel mills require castables as back lining, the layer that helps maintain a high-temperature environment. Our new product is attractive to steel companies because it is more cost-effective and energy-saving at the same time. In addition to Baosteel, we are following up on other potential sales leads with both our existing and prospective customers. We anticipate these trial uses will lead to sales orders by the end of the year."
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 in 11 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. and Henan Gengsheng High Temperature Materials Co., Ltd.
For more information about the Company, please visit http://www.gengsheng.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Gengsheng Minerals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the Company's ability to meet its projected output for the term of the supply contract; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
In China:
Mr. Shuai Zhang
Investor Relations
China Gengsheng Minerals, Inc.
Email: shuai298@126.com
In the U.S.:
Mr. Valentine Ding
Investor Relations
Grayling
Tel: +1-646-284-9412
Email: valentine.ding@us.grayling.com
