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China Valves Expects Government Support for Infrastructure Projects and China’s Equipment Manufacturing Sector to Help the Valve Industry

February 16, 2009

KAIFENG, China, Feb. 16 /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 it expects the
Chinese government’s recently announced plans to develop infrastructure
projects and help the domestic equipment manufacturing sector to provide
significant support to the domestic valve industry.

In November 2008, the Chinese government announced that it will undertake
an economic stimulus program to assist the domestic economy. A $586 billion
economic stimulus spending package was announced that includes developing
infrastructure projects as a means of sustaining the Chinese economy. The
government’s support of infrastructure development will increase expenditures
on a number of major projects including a major West-to-East Gas Pipeline
Project, post-earthquake reconstruction in Sichuan province, a South-to-North
Water Diversion Project, and upgrade of urban area infrastructure.

China Valves expects development of the specific infrastructure projects
named by the government to create new sales opportunities for the Company.
China Valves expects to supply two-way metal seal butterfly valves for use in
water supply and drainage systems which are part of the South-to-North Water
Diversion Project, and half ball valves for use in the West-to-East Gas
Pipeline Project. China Valves also expects to provide valves for use in
rebuilding water supply systems, power stations, petrochemical plants and
pipelines in the Sichuan earthquake area.

At the beginning of February 2009, as part of China’s announced economic
stimulus package, a detailed proposal aimed at reviving the domestic equipment
manufacturing industry was finalized and sent to the State Council for
discussion. The State Council is expected to approve the proposal soon. This
proposal calls for more innovation and efficient production, and the increased
development and use of technology in the domestic equipment manufacturing
sector. It supports faster development of equipment that is used in the
production of goods, and the increased use of China-made equipment instead of
imported equipment.

”We plan to acquire and use new technology to optimize our product mix
and meet the requirements of the major infrastructure projects named in the
government’s economic stimulus plan. We expect that the detailed industrial
benefit policies aimed at reviving the domestic equipment manufacturing
industry which should be approved soon to give further support to our strategy
of promoting Made-In-China products in place of imported products,” said Mr.

Siping Fang, Chairman and CEO of China Valves. ”We are currently expanding
our manufacturing capabilities in order to meet increasing demand for a number
of high-tech valves which are used in several different industries. We are
also pursuing acquisition targets to expand our business.”

About China Valves Technology, Inc.

China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie
Valve Co, Ltd. and Henan Kaifeng High Pressure Valve Co., Ltd., is engaged in
the development, manufacture and sale of high-quality metal valves for the
electricity, petroleum, chemical, water, gas and metallurgy industries. One of
the best known brand names in China’s valve industry, the Company’s history
can be traced back to when it was formed as a state-owned enterprise in 1959.
The Company’s products are the result of extensive research and development
which also led to a number of patented products and manufacturing processes.
China Valves has significant market shares of valve sales to a number of
domestic industries, and exports to the rest of Asia and Europe.

Safe Harbor Statement

Certain statements set forth in this press release constitute
“forward-looking statements.” Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate, or imply
future results, performance or achievements, and may contain the words
“estimate,” “project,” “intend,” “forecast,” “anticipate,” “plan,” “planning,”
“expect,” “believe,” “will likely,” “should,” “could,” “would,” “may” or words
or expressions of similar meaning. Such statements are not guarantees of
future performance and are subject to risks and uncertainties that could cause
the company’s actual results and financial condition to differ materially from
what is included within the forward-looking statements. Forward-looking
statements involve risks and uncertainties, including those relating to the
Company’s ability to achieve its after tax net income targets, expand its
market share and complete strategic acquisitions. Actual results may differ
materially from the results predicted and reported results should not be
considered as an indication of future performance. Potential risks and
uncertainties include, among others, our failure to implement acquisition
growth strategy, difficulty to defend our intellectual property rights from
infringement, currently unknown and unforeseeable constraints on the Company’s
ability to continue operations, domestic or global economic conditions –
especially those relating to China, activities of competitors and the presence
of new or additional competition, and changes in United States Federal or
State laws, restrictions and regulations on doing business in a foreign
country, in particular China, and conditions in equity markets. All of such
assumptions are inherently subject to uncertainties and contingencies beyond
our control and upon assumptions with respect to future business decisions,
which are subject to change. We do not undertake to update the forward-looking
statements contained in this press release. For a description of the risks and
uncertainties that may cause actual results to differ from the forward-looking
statements contained in this press release, see our most recent Annual Report
filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our
subsequent SEC filings. Copies of filings made with the SEC are available
through the SEC’s electronic data gathering analysis retrieval system (EDGAR)
at http://www.sec.gov .

    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.net/en/

    CCG Investor Relations
     Crocker Coulson, President
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

SOURCE China Valves Technology, Inc.


Source: newswire



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