Combined contracts valued at $7.3 million
GONGYI, China, Nov. 25 /PRNewswire-Asia/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or "the Company"), a high-tech industrial materials products company in China with products capable of withstanding high temperatures, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it renewed its full-service contracts for refractory products with three Chinese steel customers for another year. The combined total value of the three renewal contracts, which are with Anhui Changjiang Steel Co. Ltd., Heilongjiang Jianlong Steel Co. Ltd., and Laiyuan Aoyu Steel Co., Ltd., is $7.3 million. The payments will be on a monthly basis in accordance with the production schedules.
The Company provides "full services" to China's steel mills in the form of refractory product installation, testing, maintenance, repair and replacement. Full-service customers contributed approximately 49.1% of the Company's total sales of refractory segment in the first nine months of 2009. Steel mills typically replace the refractory parts in their furnaces on an annual basis.
"I am encouraged by the renewal of these refractory full-service contracts," said Mr. Shunqing Zhang, Chairman and CEO of the Company. "Full-service programs typically enjoy higher gross margins than straight product sales; they also ensure stable customer relations and recurring monthly payments. As China's steel sector undergoes a process of restructuring and modernization and energy conservation becomes a top priority as steel makers upgrade their production facilities, we are well positioned to benefit from this trend by providing a value-added 'one-stop shop' solution to our key customers."
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 industries 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 obligations under its full-service contracts; the profit margin, timely payments and other economic benefits the Company expects to receive under such contracts, the Company's ability to maintain its customer relations; 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.
Ms. Wendy Sun
Finance Manager and Investor Relations
Tel: +86-159-3870-8666
Email: wendyshure@gmail.com
Mr. Shuai Zhang
Investor Relations
Email: shuai298@126.com
In the U.S.:
Grayling
Mr. Kevin Theiss
Investor Relations
Tel: +1-646-284-9409
Email: kevin.theiss@us.grayling.com
RedChip Companies, Inc.
Mr. Dave Gentry
President
Tel: +1-407-491-4498
Email: info@redchip.com
