China Gengsheng Minerals Renews Full-Service Refractory Contract and Regenerative Bricks Contract with Shandong Iron and Steel Group, Rizhao Subsidiary
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 a
full-service refractory contract and regenerative bricks contract with
Shandong Iron and Steel Group, Rizhao Subsidiary. The combined total value of
the two contracts is approximately
The term of the full-service contract is one year, effective from
accordance with the production schedules. The term of the regenerative bricks
contract is 18 months, with a unit price of
and Steel Group, Rizhao Subsidiary is the Company’s top customer, accounting
in the first nine months of 2009.
“I am encouraged by the two contracts with Shandong Iron and Steel Group,
Rizhao Subsidiary,” said Mr. Shunqing Zhang, Chairman and CEO of the Company.
“As our biggest customer and strategic partner, Shandong Iron and Steel Group,
Rizhao Subsidiary has generated solid revenue growth and stable revenue
streams for us. Meanwhile, the high value-added products such as the full-
service programs and regenerative bricks typically enjoy higher gross
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.
In addition, the Company recently renewed its full-service contracts for
refractory products with three other Chinese steel customers for another year.
The combined total value of the three renewal contracts is estimated to be
About Shandong Iron and Steel Group, Rizhao Steel Subsidiary
Shandong Iron and Steel Group, a state-owned mill in the
as the provincial government consolidated the steel industry. The combination
boosted Shandong Iron and Steel Group’s steel output to the third highest in
steel last year, according to the World Steel Association.
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 its business through Gengsheng
International Corporation, a
subsidiaries, 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
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 various contracts; the
anticipated value, 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 production capabilities and needs of our
customers; 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: email@example.com Mr. Shuai Zhang Investor Relations Email: firstname.lastname@example.org In the U.S.: RedChip Companies, Inc. Mr. Dave Gentry President Tel: +1-407-491-4498 Email: email@example.com
SOURCE China Gengsheng Minerals, Inc.