GONGYI, China, Sept. 15 /PRNewswire-Asia-FirstCall/ -- 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 received $337,000 (RMB 2.3 million) from the Henan Provincial Government in subsidy for the development and commercialization of Gengsheng's new product line, the fine precision abrasives ("the abrasives").
The abrasives are ultra-fine grains of silicon carbide, white fused alumina, and blend materials used in the cutting and polishing of optical equipment, semiconductors, and fine metal surfaces to improve finish quality. Gengsheng uses its patented technology to focus on producing lapping abrasives and polishing compounds for the processing of silicon wafers among Chinese solar cell manufacturers, who at the moment import such abrasive products from Japan and France. To compete successfully with import materials, Gengsheng will secure sources of raw materials in Xinjiang Uygur Autonomous Region to achieve low-cost advantage, along with its own proprietary technology to improve manufacturing efficiency.
Gengsheng's abrasive production facilities, which are located in Gongyi City, Henan Province, have an annual capacity of 20,000 tons.
"Our solar industry-targeted abrasives have now been officially recognized as a high and new technology industrial product by the Henan Provincial Government and will continue to receive government support including further subsidies and low-interest loans," said Mr. Shunqing Zhang, Chairman and CEO of Gengsheng. "With crude oil prices climbing back from depressed levels and the Chinese government's strong solar stimulus, awarding about 10GW of PV projects worth more than $20 billion in July and August of this year alone, we are confident that the market for our ingot-slicing and panel-polishing abrasives is poised for robust growth in the near future, with our government mandating 10GW of installed solar power by the year 2020, from under 100MW of total installed solar power capacity at the end of 2008."
Gengsheng last year signed its first sales contract for the abrasives with a Taiwan-based customer. The term of the contract is five years, with 300-500 tons of the product delivered each month. The value of the contract was not disclosed.
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:
China Gengsheng Minerals, Inc
Mr. Shuai Zhang
Investor Relations.
Email: shuai298@126.com
In the U.S.:
Grayling
Mr. Valentine Ding
Investor Relations
Tel: +1-646-284-9412
Email: valentine.ding@us.grayling.com
