China Valves Technology, Inc. Announces Material Progress in Research and Development of Leakage Control Device for Water Supply Networks
ZHENGZHOU, China, April 15, 2011 /PRNewswire-Asia-FirstCall/ — China Valves Technology, Inc. (NASDAQ: CVVT) (“China Valves” or the “Company”), a leading Chinese metal valve manufacturer, today announced that one of its subsidiaries, China Valve Technology (Changsha) Valve Co., Ltd. (“Changsha Valve”), has made material progress in the research and development of a leakage control device for water supply networks.
Leakage control is an integral function in terms of monitoring and reducing leakage levels in a water supply network. The device currently under development utilizes multi-orifice regulating valve technology, advanced wireless telecommunication technology, voltage-sharing AZP algorithms and control software, which allows the user to monitor and adjust the pressure and flow of the water supply network on a real-time basis. Changsha Valve has adopted the globally leading technology of District Metering Area (“DMA”) for monitoring and reducing leakage levels and aiming to achieve a leakage rate under 5%, which is significantly below the international levels of 6.3%.
Changsha Valve has selected a trial site where it expects to test the application by the end of June 2011. The Company has already identified potential customers, as large water infrastructure developers such as Shenzhen Water Group and Beijing Capital Co., Ltd. have expressed their interest in utilizing the DMA technology and the new pressure control device once Changsha Valve completes the operating condition test and begins the commercialization phase.
The Company commenced this development project in June 2010 and has to date expended approximately $0.45 million of a total expected project cost of approximately $0.6 million. The project was approved by the Ministry of Construction in October 2010. Moreover, the Ministry of Housing and Urban-Rural Development in China initiated a project focused on the integration of pressure control devices for water supply networks, which supports the development of the leakage control device.
“We are excited about the market potential introduced by this new product. We believe one device can service approximately 10,000 people, which indicates that China would require approximately 60,000 units in order to cover all urban residents. We estimate that the total potential market value of leakage control devices for water supply networks in China is around RMB 12 billion, or approximately $1.8 billion, of which we could capture a sizeable portion,” said Mr. Jianbao Wang, the Chief Executive Officer of China Valves. “In addition, one device could save approximately 17,900 tons of water per month by controlling leakage, which supports the government’s policy of energy and resource conservation.”
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: +86-371-8601-8777 E-mail: email@example.com http://www.cvalve.com CCG Investor Relations Linda Salo, Account Manager Tel: +1 646-922-0894 E-mail: firstname.lastname@example.org Crocker Coulson, President Tel: +1 646-213-1915 E-mail: email@example.com http://www.ccgirasia.com
SOURCE China Valves Technology, Inc.