October 8, 2008
China Fire Signs $7.6 Million Contracts With China Nuclear Power Engineering Co., Ltd.
BEIJING, Oct. 8 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security Group, Inc. ("China Fire" or "the Company"), a leading industrial fire protection product and solution provider in China, announced today that the Company has signed two contracts with China Nuclear Power Engineering Co., Ltd. ("CNPEC"), valued at approximately $7.6 million for two independent fire protection projects.
CNPEC, headquartered in Shenzhen, Guangdong Province, is a subsidiary of China Guangdong Nuclear Power Group ("CGNPG"), the largest of the three nuclear power companies in China, which owns Guangdong Daya Bay Nuclear Power Station and Ling'ao Nuclear Power Station ("LNPS") Phase I that have a total installed generating capacity of up to 4,000 MWe. CGNPG is currently constructing four new projects, including LNPS Phase II, Liaoning Hong Yanhe Station ("LHYS") Phase I, Ningde Nuclear Power Station ("NNPS") Phase I and Yangjiang Nuclear Power Station Phase I with a total installed generating capacity of up to 10,000 MWe.
Under the first contract, China Fire will serve as a fire-extinguishing equipment provider for LHYS Phase I project that has a nuclear power generating capacity of 4,000 MWe in Liaoning Province. The contract is valued at approximately $5.0 million. China Fire will provide fire-extinguishing products that include deluge valve units, high-speed water mist nozzles, fire hydrants, fire hoses, CO2 fire-extinguishers, foam-based fire-extinguishing systems, etc. The project is expected to be completed within the next three years.
Under the second contract, China Fire will also serve as a fire-extinguishing equipment provider for NNPS Phase I project that has a nuclear power generating capacity of 2,000 MWe in Fujian Province. China Fire will provide various fire-extinguishing products with contract value of approximately $2.6 million. The project is expected to be completed within the next three years.
"We are very pleased with the recent contract wins of $7.6 million with CNPEC, a breakthrough achievement in a new industrial vertical, demonstrating our leading position in China's fire protection industry. While the fire protection products designed for nuclear power plants involve the most sophisticated technologies in this industry, these contract wins illustrate our strong capacity in product development," commented Mr. Brian Lin, CEO of China Fire. "It's forecasted that between 3 to 5 large-scale nuclear power plants will be built every year until 2020. Each nuclear power plant costs about $7 billion. The government also mandates that at least 50% of the equipment used for new nuclear power plants should be sourced locally. As the largest industrial fire protection provider in China, China Fire will definitely benefit from the government policy and the huge demands for fire protection equipment and services in nuclear power industry. To better serve our clients in this new vertical, we will further strengthen our R&D capabilities to develop fire protection solutions and products tailored to meet special demands in nuclear power industry. Leveraging on the winning of these two contracts, we are also working closely with CNPEC and other nuclear power companies on their upcoming fire protection projects in their new build-outs and we believe we will have more contract wins in the future," concluded Mr. Brian Lin.
About China Fire & Security Group, Inc.
China Fire & Security Group, Inc. , through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China.
Cautionary Statement Regarding Forward Looking Information
This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as ''believe,'' ''expect,'' ''may,'' ''will,'' ''should,'' ''project,'' ''plan,'' ''seek,'' ''intend,'' or ''anticipate'' or the negative thereof or comparable terminology, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other ''Risk Factors'' are contained in China Fire & Security Groups' public filings with the SEC.
For more information, please contact: China Fire & Security Group, Inc. Shayla Suen, Investor Relations Tel: +86-10-8441-7400 Email: [email protected] Web: http://www.chinafiresecurity.com/
China Fire & Security Group, Inc.
CONTACT: Shayla Suen, Investor Relations, +86-10-8441-7400, [email protected]
Web Site: http://www.chinafiresecurity.com/