KAIFENG, China, June 22 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (OTC Bulletin Board: CVVT) ("China Valves" or the "Company"), a leading metal valve manufacturer with operations in the People’s Republic of China (the "PRC"), today announced that the Company’s newly established production facility at its Henan Kaifeng High Pressure Valve Co., Ltd. (“Kaifeng Valve”) subsidiary began trial production at the beginning of June 2009.
The Company completed the construction of the new production facility at Kaifeng Valve in the first quarter of 2009. The new facility is equipped with state-of-the-art fully-automated machines supported by a new power transformer station. The new 13,000 square meter (approximately 140,000 square feet) facility is staffed with 70 new employees, including technicians with advanced technical backgrounds, and will focus mainly on producing high-end large diameter metal valves used in the oil and petrochemical, thermal and nuclear power, and water supply and drainage industries. The new production facility is also capable of producing high-quality forged steel valves for use in supercritical thermal power generating units. China Valves believes it is the only company in China capable of producing this technologically advanced product. As part of the trial production, the Company plans to test all production equipment in order to achieve the optimal working conditions at the facility. The Company expects to start commercial production at this new production facility in August 2009.
"Our new facility will enhance our Company’s product mix by emphasizing high gross margin products. Furthermore, the increased contribution of technologically advanced valves should significantly improve our competitive position in the high-end valve market in China, especially in the oil and petrochemical and nuclear power industries, both supported by the Chinese government," commented Mr. Fang. "Given our significant amount of repeat business and long term customer relationships, we expect to quickly ramp up capacity utilization to targeted levels once commercial production begins."
The Company also hosted a trial production ceremony following the China Valve Industry Association conference held in Kaifeng City on June 13, 2009. China Valves’ major customers, valve end-user industry leaders and representatives of over 400 members of China Valve Industry Association attended the conference and Mr. Siping Fang, the Company’s chairman and chief executive officer, who is also chairman of the China Valve Industry Association, delivered the keynote speech. During the ceremony, China Valves educated its major customers regarding production technologies and product quality control at the new facility.
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., and Tai Zhou Tai De Valve Co., Ltd. is engaged in development, manufacture and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best known brand names in China’s valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products by extensive research and development and owns a number of patents. It enjoys significant domestic market shares and exports to Asia and Europe. For more information, visit http://www.cvalve.com
Safe Harbor Statements
Any statements set forth above that are not historical facts are
forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company’s ability to increase utilization at the new facility to targeted levels, develop and market new products, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise. This press release was developed by China Valves, and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company’s stock. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
For more information, please contact:
China Valves Technology, Inc.
Ray Chen, VP of Investor Relations
Tel: +1-650-281-8375
+86-139-2527-9478
Email: raychen@cvalve.net
Web: http://www.cvalve.com
CCG Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
