KAIFENG, China, June 30 /PRNewswire-Asia/ -- 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 its subsidiary Henan Kaifeng High Pressure Valve Co., Ltd. ("Kaifeng") received purchase orders for nuclear forged steel valves from China Guangdong Nuclear Power Group ("CGNPG") valued at $4.7 million.
State-owned CGNPG is one of China's two leading companies engaged in nuclear power development and operation. The nuclear forged steel valves covered by the order will be used for CGNPG's projects at the Liaoning Hongyan River nuclear power station and Fujian Ningde nuclear power station. The Company is required to deliver 50% of the order by the end of 2009 and must deliver the remaining orders before March 2010. CGNPG will pay 10% of the contract value immediately and the remainder upon delivery.
Nuclear forged steel valves are used primarily in the steam turbines of a nuclear power plant's conventional island. The steam turbines generate thermal energy that is converted into electric power in the conventional island. Nuclear forged steel valves have stricter production standards than ordinary forged steel valve products in terms of quality and safety.
"Receiving this purchase order is major step forward in expanding our footprint in the nuclear power sector in China. It demonstrates the superior quality of our forged steel valves as well as our dedicated marketing efforts that have increased awareness of our brand among key players in this fast-growing sector," said Mr. Siping Fang, Chairman and CEO of China Valves.
China is driving growth in global nuclear power installation. According to the latest estimate as of April 2009 from the National Energy Administration, China's administrative body overseeing the energy industry developments and standards, China's total nuclear power installation capacity is expected to reach over 75 Gigawatt-electric ("GWe") by the end of 2020, up from 9.1 GWe at the end of 2008, indicating an increase of approximately 5.5 GWe in nuclear power installation capacity per year. In comparison, the International Atomic Energy Agency expects global nuclear power installation capacity to increase between 4.6 GWe and 17.1 GWe annually between 2009 and 2030.
"Currently the majority of China's nuclear power station projects are completed in collaboration with foreign nuclear power technology companies. However, as the technology of domestic nuclear power equipment providers improves, the Chinese government intends to encourage domestic involvement in China's nuclear power sector. This opens the door for technologically advanced, value-added manufacturers like China Valves to expand our market share in this important sector," said Mr. Fang.
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 nuclear and thermal power electricity, petroleum, chemical, water supply, 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 of the Company to obtain orders from other nuclear power companies, the ability of the Company to improve its cash position, 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
