CHANGSHU, China, Feb. 11, 2015 /PRNewswire/ -- Sutor
Technology Group Limited (the "Company" or "Sutor") (Nasdaq: SUTR),
one of the leading China-based
manufacturers and service providers for fine finished steel
products used by a variety of downstream applications, today
announced that its subsidiary, Changshu Huaye Steel Strip Co.,
Ltd. ("Changshu Huaye"), entered
into a non-binding letter of intent dated February 8, 2015 (the "LOI") with the
shareholders of Shanghai Huaye Iron & Steel Group Co., Ltd.
("Shanghai Huaye"). The LOI contemplates a transaction in which
Changshu Huaye will acquire Shanghai Huaye, a company incorporated
and existing in China.
The Company expects that Changshu Huaye will be a controlling
shareholder of Shanghai Huaye when this transaction is completed.
Shanghai Huaye presently has eight subsidiaries, which have 53
precision processing lines, with a total annual processing capacity
of approximately 10 million tons and a total annual storage
capacity of approximately 15 million tons. Consummation of the
transaction is subject to entry into a definitive agreement between
the parties containing specific signing and closing terms and
conditions yet to be negotiated.
Ms Lifang Chen, Chief Executive
Officer and President of the Company commented, "We are pleased
that we have seized the opportunity in industry transformation and
taken an important step in seeking potential acquisition targets.
After signing the LOI, we will carry out audit and assessment on
Shanghai Huaye. We believe this transaction will provide a positive
impetus for Sutor's business transformation. Our strategic
expansion will make Sutor an integrated service provider of
research and development, sales, processing, logistics and
e-commerce of customized fine finished steel. We will provide an
update on our progress of the transaction when and if
appropriate."
About Sutor Technology Group Limited
Sutor is one of the leading China-based manufacturers and service
providers for high-end fine finished steel products and welded
steel pipes used by a variety of downstream applications. The
Company utilizes a variety of in-house developed processes and
technologies to convert steel manufactured by third parties into
fine finished steel products, including hot-dip galvanized steel,
pre-painted galvanized steel, acid-pickled steel, cold-rolled steel
and welded steel pipe products. In addition, the Company offers
fee-based steel processing services and sells fine finished steel
products through electronic commerce platforms. To learn more about
the Company, please visit http://www.sutorcn.com/en/index.php.
Forward-Looking Statements
This press release includes certain statements that are not
descriptions of historical facts, but are "forward-looking
statements" in nature within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements include, among
others, those concerning our potential acquisition of Shanghai
Huaye, expected business transformation, liquidity and strategic
and operational plans, our future operating results, our
expectations regarding the market for our products, our
expectations regarding the steel market, as well as all
assumptions, expectations, predictions, intentions or beliefs about
future events. You are cautioned that any such
forward-looking statements are not guarantees of future performance
and that a number of risks and uncertainties could cause our actual
results to differ materially from those anticipated, expressed or
implied in the forward-looking statements. These risks and
uncertainties include, but not limited to, the factors mentioned in
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended June 30, 2014, and
other risks mentioned in our other reports filed with the
Securities Exchange Commission ("SEC"). Copies of filings
made with the SEC are available through the SEC's electronic data
gathering analysis retrieval system (EDGAR) at
http://www.sec.gov. The words "believe," "expect,"
"anticipate," "project," "targets," "optimistic," "intend," "aim,"
"will" or similar expressions are intended to identify
forward-looking statements. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. The Company assumes no obligation and does not
intend to update any forward-looking statements, except as required
by law.
For more information, please contact:
Investor
Relations
Sutor Technology Group
Limited
Tel:
+86-512-5268-0988
Email: investor_relations@sutorcn.com
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SOURCE Sutor Steel Technology Co., Ltd.