July 15, 2008
Hanfeng Begins Production at Fengxi Joint Venture Plant
Hanfeng Evergreen Inc. ("Hanfeng" or the "Company")(TSX: HF), a leading producer of slow and controlled release fertilizers in China, announced today that Hanfeng Slow-Release Fertilizer (Shanxi) Co., Ltd., the 50/50 joint venture company established by Hanfeng and Shanxi Fengxi Fertilizer Industry (Group) Ltd.("Fengxi"), has successfully completed commissioning of the 50,000 tonnes per annum ("tpa") sulfur coated urea ("SCU") plant in Shanxi Province, China. The SCU plant was constructed at the Fengxi facility immediately next to a newly constructed granular urea plant. The SCU produced by the joint venture plant will be marketed primarily to wheat and cotton growers, which is the primary crop in the province. Construction of the SCU plant was completed on budget and all commissioning and testing met both Fengxi and Hanfeng's exacting requirements.
"We were very impressed by the efficient construction methods and the high engineering standards employed by Hanfeng," commented Haishui Dong, President and Chairman of Fengxi. "This project further establishes Hanfeng as a leader in both slow release technology and high-tech plant construction."
"With the continuing rise in the price of oil, slow-release fertilizers are becoming increasingly popular amongst farmers and are winning strong support from the Chinese Government," stated Xinduo Yu, President and CEO of Hanfeng. "We are well positioned to grow our market share by capitalizing on the advantages of our slow release technology and our ability to construct quality slow release fertilizer facilities. The successful cooperation between Fengxi and Hanfeng validates the joint venture model that will enable us to further grow our production base throughout China. The Fengxi project also allowed us to train a highly efficient plant construction team, which not only creates new resources for the recently announced joint venture plants in Shandong Province, China and Surabaya, Indonesia, but for future projects as well."
Hanfeng and Fengxi will host an opening ceremony on July 18 for the new facility. The opening ceremony will be well attended by guests from the National Center for Quality Supervision and Testing of Chemical Fertilizers, the National Agro-Tech Extension and Service Center, China Nitrogen Fertilizer Industry Association, the Chinese Academy of Agricultural Sciences, Agrium's Beijing Office, China National Offshore Oil Company and other large-scale nitrogen enterprises.
Per an existing agreement, Agrium has an exclusive right to acquire 50% of Hanfeng's interest through a holding company in Canada for this SCU project and any future SCU projects of Hanfeng in China. Agrium's right expires in April 2009.
With production capacity of 6 million tonnes per annum of fertilizer and chemical products, Fengxi is one of the largest nitrogen fertilizer producers in China. Within Shanxi province, Fengxi currently produces close to 3 million tonnes of urea annually with plans to further increase. Fengxi's coal gasification urea production provides quality urea at extremely competitive costs.
About Hanfeng Evergreen Inc.
Hanfeng is the largest producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China's agriculture market with its establishment of the first commercial scale production in China. All production facilities are located in prime agricultural regions of China. The Company is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. www.hanfengevergreen.com
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars except for noted otherwise.
Contacts: Hanfeng Evergreen Inc. Madeline Haiying Yu, CA Chief Financial Officer (416) 368-8588 Email: [email protected] Website: www.hanfengevergreen.com Spinnaker Capital Markets Inc. Kevin O'Connor Investor Relations (416) 962-3300 Email: [email protected]
SOURCE: Hanfeng Evergreen Inc.