China Gengsheng Minerals, Inc. Announces a 5-Year Sales Contract for Fine Precision Abrasives
China Gengsheng Minerals, Inc., a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has signed its first sales contract for its fine precision abrasive products with a Taiwan-based vendor. The term of the contract is five years, with 300-500 metric tons delivered each month.
According to the contract, the Taiwanese customer will serve as Gengsheng’s exclusive vendor in Taiwan. The Company is expecting the first shipment to begin in October 2008.
The abrasives that Gengsheng is supplying are made from silicon carbide (SiC). These are ultra-fine, high-strength pellets with uniform shape, and have applications in surface-polishing and slicing of precision instrument such as solar panels. The Company expects to operate, by the end of this year, a facility that can produce 2,083 metric tons of abrasives per month.
“Our first abrasives sales contract marks a milestone in Gengsheng’s history,” said Mr. Shunqing Zhang, Chairman, CEO and President of Gengsheng. “As we bring more high-end and higher-margin material products into our offerings, we expect to be better positioned to withstand the effects of rising raw material costs and increasing competition in the market place.”
Mr. Zhang continued, “Currently, the type of abrasives that we are launching is in high demand among solar-energy companies and they are mostly imported from Japan. We expect to see the burgeoning solar industry in China and elsewhere catalyze our rapid growth in this new product.”
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 industry 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 China’s Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese 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 http://www.gengsheng.com .
For more information, please contact:
In China: Mr. Fulong Zheng Investor Relations China Gengsheng Minerals, Inc. Tel: +86-371-6405-9846
Email: gszfl@gengsheng.com
In the U.S.: Valentine Ding Investor Relations Grayling Global Tel: +1-646-284-9412
Email: vding@hfgcg.com
Source: China Gengsheng Minerals, Inc.
