China Valves Technology, Inc. Starts Formal Production at New Facility in Kaifeng
September 01 2009 - 8:00AM
PR Newswire (US)
KAIFENG, China, Sept. 1 /PRNewswire-Asia-FirstCall/ -- China Valves
Technology, Inc. (OTC:CVVZ) (BULLETIN BOARD: CVVZ) ("China Valves"
or the "Company"), a leading metal valve manufacturer with
operations in the People's Republic of China (the "PRC"), today
announced that the Company's new production facility at its Henan
Kaifeng High Pressure Valve Co., Ltd. ("Kaifeng Valve") subsidiary
will begin formal production in mid September 2009. The new
production facility at Kaifeng Valve will mainly focus on the
production of high-end large diameter metal valves used in thermal
and nuclear power plants, as well as by the oil petrochemical and
water supply and drainage industries. Additionally, the new
facility will produce high-quality forged steel valves for use in
supercritical thermal power generating units. The Company believes
it is the only company in China capable of manufacturing this
advanced product. The new facility will also produce conventional
islands valves of nuclear power stations. The facility covers
13,000 square meters (approximately 140,000 square feet) and is
equipped with state-of-the-art, fully automated machines supported
by a new power transformer station. The construction was completed
in the first quarter of 2009 and the facility began trial
production in June 2009. "Our new facility will focus on production
of high-end valve products, and we plan to quickly ramp up
production to reach 100% utilization by the end of 2009. Based on
feedback from end valve users in the power generation and oil and
petrochemical industries, demand for large diameter valves and
forged steel valves will remain strong due to the shortage of
production capacity for valve products used in more critical
applications, such as supercritical thermal power generating units.
This conscious and ongoing shift in our product portfolio towards
technologically advanced valves should significantly improve our
competitive position in the high-end valve market in China," said
Mr. Siping Fang, Chairman and Chief Executive Officer of China
Valves. "We expect the new facility to contribute $9.8 million in
revenue and $3 million in net income in 2009. On a full year basis
when at full capacity and accounting for seasonality we expect the
new facility will contribute approximately $29.4 million in revenue
and approximately $9 million in net income. These estimates assume
that the facility's product mix remains in line with current
backlog. However, annualized revenue and net margin may change as
our product offerings evolve." About China Valves Technology, Inc.
China Valves Technology, Inc., through its subsidiaries, Zhengzhou
Zhengdie Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co.,
Ltd., and Tai Zhou Tai De Valve Co., Ltd., is engaged in
development, manufacture 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 by extensive research and development and
owns a number of patents. It enjoys significant domestic market
shares 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 increase utilization at the
new facility to targeted levels, develop and market new products,
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 to the public any forward-looking statements, whether as a
result of new information, future events or otherwise. This press
release was developed by China Valves, and is intended solely for
informational purposes and is not to be construed as an offer or
solicitation of an offer to buy or sell the Company's stock. 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. For more
information, please contact: China Valves Technology, Inc. Ray
Chen, VP of Investor Relations Tel: +1-650-281-8375
+86-139-2527-9478 Email: Web: http://www.cvalve.com/ CCG Investor
Relations Crocker Coulson, President Tel: +1-646-213-1915 Email:
Web: http://www.ccgirasia.com/ DATASOURCE: China Valves Technology,
Inc. CONTACT: Ray Chen, VP of Investor Relations of China Valves
Technology, Inc., +1-650-281-8375, +86-139-2527-9478, ; or Crocker
Coulson, President of CCG Investor Relations, +1-646-213-1915, Web
site: http://www.cvalve.com/
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