NEW YORK, Sept. 27, 2012 /PRNewswire/ -- Asia Carbon
Industries, Inc. ("Asia Carbon", or
the "Company") today announced that it will begin converting its
three dry production lines to specialty carbon black production
lines. The project to be funded by cash from operations is expected
to begin on October 1, 2012 and
finish in about three months. The total cost is approximately
$4 million.
The specialty materials to be produced at the new facilities
will generate significantly more revenues as a result of the higher
sales prices. In addition, its manufacturing process is
significantly cleaner. Specialty carbon black also has a broader
range of uses as compared to the more traditional products; these
include use as a pigmenting agent, UV stabilizer or conductive
agent in a variety of products, such as plastics, toners and
printing inks and coating, battery and electrical parts.
The current sales price for specialty carbon black is
approximately $2,400 per ton, as
compared to approximately $940 per
ton for the carbon black now being manufactured at the Company's
existing production lines.
Each of the Company's dry production lines has an annual
production capacity of 12,000 tons, operating at approximately 80%
capacity, together the three dry production lines generate
approximately $27 million revenue per
year at the current price levels. Once the renovation has been
completed, the production lines will each have an annual capacity
of 6,000 tons, for a total of 18,000 tons of specialty carbon black
per year. Projected revenue from specialty carbon black
production at similar operating capacity is anticipated to be
approximate $35 million annually.
During the production line conversion, the Company will halt
production on the existing three production lines. Consequently,
management expects revenue for the upcoming fourth quarter may
reflect that change.
Ms. Yao Guoyun, Asia Carbon's Chairwoman of the Board and Chief
Executive Officer, commented, "This renovation is just another step
in Asia Carbon's expansion plan. As
with the recently announced construction of an on-site power plant,
the benefits of the conversion are both financial and
environmental."
Ms. Yao went on to say, "We believe that China's recent stimulus announcement confirms
the PRC's government support for domestic growth. It is a good
indication for the automotive sector, and as a result, tire
manufacturers, currently our primary customer. However, the
increased production of specialty products allows the Company to
diversify our customer base into other market sectors, and better
enables Asia Carbon to participate
in China's expected economic
growth."
About Asia Carbon Industries, Inc.
Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high
quality carbon black products under the brand name "Great Double
Star." The Company was established in 2003 in Shanxi, China's highest coal producing
province. Asia Carbon is one of the
top ten carbon black producers in the province and has established
relationships with a high-profile customer base. The Company went
public in 2010 through a registration statement on Form S-1 which
was declared effective by the SEC on October
25, 2010, and is currently in the process of expanding its
manufacturing capacity to meet the anticipated demand. For
more information, visit www.asiacarbonindustries.com. The
Company routinely posts important information on its website.
Forward-looking statements:
The above news release contains forward-looking statements. The
statements contained in this document that are not statements of
historical fact, including but not limited to, statements
identified by the use of terms such as "anticipate," "appear,"
"believe," "could," "estimate," "expect," "hope," "indicate,"
"intend," "likely," "may," "might," "plan," "potential," "project,"
"seek," "should," "will," "would," and other variations or negative
expressions of these terms, including statements related to
expected market trends and the Company's performance, are all
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve a number of
risks and uncertainties. These statements are based on assumptions
that management believes are reasonable based on currently
available information, and include statements regarding the intent,
belief or current expectations of the Company and its management.
Prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performances, and are
subject to a wide range of external factors, uncertainties,
business risks, and other risks identified in filings made by the
company with the Securities and Exchange Commission. Actual results
may differ materially from those indicated by such forward-looking
statements. The Company expressly disclaims any obligation or
undertaking to update or revise any forward-looking statement
contained herein to reflect any change in the company's
expectations with regard thereto or any change in events,
conditions or circumstances upon which any statement is based
except as required by applicable law and regulations.
Company contact:
Delong Zhou
Asia Carbon Industries, Inc.
Phone +1-917-825-2997
SOURCE Asia Carbon Industries, Inc.