China Valves Technology Updates on Progress for the Localization of Ultra-Supercritical Valves for Thermal Power Plants
ZHENGZHOU, China, Feb. 23, 2011 /PRNewswire-Asia-FirstCall/ — China Valves Technology, Inc. (NASDAQ: CVVT) (“China Valves” or the “Company”), a leading Chinese metal valve manufacturer, today announced that with guidance and coordination from The Bureau of National Energy of China, the Company’s subsidiary Henan Kaifeng High Pressure Valve Co., Ltd. (“Kaifeng Valve”) has signed a research and development agreement with Nantong Power Plant to supply DN250main stream valves, DN350 hydraulic inlet / outlet three-way valves, DN800 extraction of high discharge check valves, and DN2800 turbine vacuum Butterfly valves, all which are newly designed for 1,000 MW ultra-supercritical power plants.
In March, the Company plans to sign supply contracts for ultra-supercritical 1,000MW specifications with an additional four power plants.
Kaifeng Valve has been approved by the State Council as a key provider for the localization of high-performance valves for thermal power plants. Currently, there are 11 research projects for ultra-supercritical valves to be localized or manufactured by local companies for thermal power plants, of which Kaifeng Valve undertakes seven. This level of involvement reflects the subsidiary’s key position in the domestic thermal power valve industry, together with its technological innovation advantage.
Separately, the Ministry of Industry and Information Technology and the State General Administration of Customs already decided to cancel the import tax exemption for a selection of imported valves used in 1,000 MW ultra-supercritical power plants, leading to a tax of 14% on the import tariff.
“We are satisfied with the smooth process of localization of high-end valves,” said Jianbao Wang, Chief Executive Officer of China Valves. “As a leader of China’s valve industry, China Valves has a responsibility to upgrade the standards for domestic products. I first initiated the project of replacing imported valves in ultra-supercritical thermal power plants with domestic products with China’s Industry Development Promotion in November 2009, and I am pleased to witness our level of contribution to the national valve industry in the year that followed. We hope for intensified cooperation with additional power plants in the future to take this project to the next level.”
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co., Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., Tai Zhou Taide Valve Co., Ltd., Yangzhou Rock Valve Lock Technology Co., Ltd., China Valve Technology (Changsha) Valve Co., Ltd. and Shanghai Pudong Hanwei Valve Co., Ltd., is engaged in the development, manufacturing and sale of high-quality metal valves for the electricity, petroleum, chemical, water, 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 through extensive research and development and owns a number of patents. It enjoys significant domestic market share 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 to access capital for expansion, the ability to acquire other companies, 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 any forward-looking statements, whether as a result of new information, future events, or otherwise. 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.
China Valves Technology, Inc. Gang Wei, CFO Tel: +86-371-8600-9777 E-mail: firstname.lastname@example.org http://www.cvalve.com CCG Investor Relations Linda Salo, Account Manager Tel: +1 646-922-0894 E-mail: email@example.com Crocker Coulson, President Tel: +1 646-213-1915 E-mail: firstname.lastname@example.org http://www.ccgirasia.com
SOURCE China Valves Technology, Inc.