KAIFENG, China, Dec. 2 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (Nasdaq: 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 subsidiary, Zhengzhou Zhengdie Valve Co, Ltd. ("Zhengdie"), has started to upgrade its product mix to focus more on the production of higher end valves for use in nuclear power stations.
Since the third quarter of 2009, the Company has started to transfer some of the production of mid- and small-diameter metal butterfly valves from Zhengdie to Tai Zhou Tai De Valve Co., Ltd. ("Tai De Valve"), which was acquired by the Company in April, 2009. Such transfer frees up some of the production capacity at Zhengdie and allows the subsidiary to focus on high-end valve products. In order to meet the requirements for high-end valve products, especially for nuclear power stations, Zhengdie has recently established its own sales team to mainly target customers in the nuclear power industry.
"Maintaining a high gross margin is just as important as growing our sales, which is why we have decided to turn our focus to high-end valve products," commented Mr. Siping Fang, Chairman and CEO of China Valves. "By shifting part of our mid-tier valve production to Tai De Valve, we are able to cultivate our Zhengdie subsidiary into a hub for developing valves for more sophisticated end uses, such as nuclear power and ultra critical thermal power generation."
In addition, Zhengdie has recently entered into an agreement to become a long-term supplier of butterfly valves to Guangdong Nuclear Power Group ("CGNPG"). The state-owned CGNPG is one of China's two leading companies engaged in nuclear power development and operation. Although the agreement does not constitute an obligation for CGNPG to place orders with Zhengdie, the subsidiary expects to receive sales orders for butterfly valves from CGNPG in the next few quarters as CGNPG is very selective in terms of accepting new suppliers.
"We are pleased with the results achieved by our sales team in Zhengdie. Becoming a long-term supplier of CGNPG is a great honor for us as it signals that this subsidiary has the technological capabilities to produce high quality valves for use in the nuclear power industry," said Mr. Siping Fang. "Our subsidiary Henan Kaifeng High Pressure Valve is already a supplier of CGNPG. The subsidiary received a sales order in June 2009, of which it has already delivered 50% in November. Based on feedback from the first order, we are confident that we will continue our achievements in this area."
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 develop and market new products, the ability to access capital for expansion, 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
Phone: +1-650-281-8375
+86-139-2527-9478
Email: raychen@cvalve.net
Web: http://www.cvalve.com
CCG Investor Relations
Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
