China Gengsheng Minerals Renews Full-Service Refractory Contracts with Three Steel Producers
GONGYI,
Minerals, Inc. (OTC Bulletin Board: CHGS) (“Gengsheng” or “the Company”), a
high-tech industrial materials products company in
of withstanding high temperatures, saving energy and boosting productivity in
certain industries such as steel and oil, today announced that it renewed its
full-service contracts for refractory products with three Chinese steel
customers for another year. The combined total value of the three renewal
contracts, which are with Anhui Changjiang Steel Co. Ltd., Heilongjiang
Jianlong Steel Co. Ltd., and Laiyuan Aoyu Steel Co., Ltd., is
The payments will be on a monthly basis in accordance with the production
schedules.
The Company provides “full services” to
refractory product installation, testing, maintenance, repair and replacement.
Full-service customers contributed approximately 49.1% of the Company’s total
sales of refractory segment in the first nine months of 2009. Steel mills
typically replace the refractory parts in their furnaces on an annual basis.
“I am encouraged by the renewal of these refractory full-service
contracts,” said Mr. Shunqing Zhang, Chairman and CEO of the Company.
“Full-service programs typically enjoy higher gross margins than straight
product sales; they also ensure stable customer relations and recurring
monthly payments. As
restructuring and modernization and energy conservation becomes a top priority
as steel makers upgrade their production facilities, we are well positioned to
benefit from this trend by providing a value-added ‘one-stop shop’ solution to
our key customers.”
About China Gengsheng Minerals, Inc.
China Gengsheng Minerals, Inc. (“Gengsheng”) develops, manufactures and
markets a broad range of high-tech industrial material products, including
monolithic refractories, industrial ceramics and fracture proppants. A market
leader offering customized solutions, Gengsheng sells its products primarily
to the iron-and-steel industries as heat-resistant components for steel-making
furnaces, industrial kilns and other high-temperature vessels to guarantee and
improve the productivity of those expensive pieces of equipment while reducing
their consumption of energy. Founded in 1986 and based in
province, Gengsheng currently has over 200 customers in the iron, steel, oil,
glass, cement, aluminum and chemical businesses located in
other countries. Gengsheng conducts business through Gengsheng International
Corporation, a
which are Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture
Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd.
For more information about the Company, please visit
http://www.gengsheng.com .
Safe Harbor Statement
This press release may contain certain “forward-looking statements”
relating to the business of China Gengsheng Minerals, Inc., and its subsidiary
companies. All statements, other than statements of historical fact included
herein are “forward-looking statements” including statements regarding the
Company’s ability to meet its obligations under its full-service contracts;
the profit margin, timely payments and other economic benefits the Company
expects to receive under such contracts, the Company’s ability to maintain its
customer relations; the general ability of the Company to achieve its
commercial objectives; the business strategy, plans and objectives of the
Company and its subsidiaries; and any other statements of non-historical
information. These forward-looking statements are often identified by the use
of forward-looking terminology such as “believes,” “expects” or similar
expressions, involve known and unknown risks and uncertainties. Although the
Company believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect. Investors
should not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company’s actual results
could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those discussed in
the Company’s periodic reports that are filed with the Securities and Exchange
Commission and available on its website at http://www.sec.gov . All
forward-looking statements attributable to the Company or persons acting on
its behalf are expressly qualified in their entirety by these factors. Other
than as required under the securities laws, the Company does not assume a duty
to update these forward-looking statements.
For more information, please contact:
In China:
China Gengsheng Minerals, Inc.
Ms. Wendy Sun
Finance Manager and Investor Relations
Tel: +86-159-3870-8666
Email: wendyshure@gmail.com
Mr. Shuai Zhang
Investor Relations
Email: shuai298@126.com
In the U.S.:
Grayling
Mr. Kevin Theiss
Investor Relations
Tel: +1-646-284-9409
Email: kevin.theiss@us.grayling.com
RedChip Companies, Inc.
Mr. Dave Gentry
President
Tel: +1-407-491-4498
Email: info@redchip.com
SOURCE China Gengsheng Minerals, Inc.