China Carbon Graphite Group, Inc. Begins Construction of New 30,000-Ton Capacity Plants
October 05 2010 - 9:47AM
China Carbon Graphite Group, Inc. (OTCBB:CHGI) ("China Carbon" or
the " Company"), the largest wholesale supplier of fine grain and
high purity graphite in China and one of the nation's top overall
producers of carbon and graphite products, today announced it has
started construction on a new forming and baking plant with an
initial budgeted investment outlay of approximately $13.5 million;
this expansion will further increase the company's production
capacity to meet the growing demand for high purity products in the
global market. Construction for both plants is planned to be
completed by the end of June 2011.
The budget for the forming plant and the baking plant is $6
million and $7.5 million, respectively. The new forming plant will
specialize in manufacturing large size ultra high graphite
electrode, high purity graphite and fine gain graphite. In
addition, the new baking plant will have 36 furnaces, totaling 160
meters in length, and will include 30,000 tons capacity, making it
the largest baking plant in China's graphite industry.
"We believe we have sufficient cash on hand and from operations,
together with our bank facility, to expand our factory capacity and
continue to support our business," said Donghai Yu, the Chief
Executive Officer of China Carbon. "As of today, we already have
30,000 tons production capacity; which can currently be broken down
into the following segments; 5,000 tons of graphite electrodes,
10,000 tons of fine grain graphite, and 15,000 tons of high purity
graphite. As soon as the two projects are completed, the total
production capacity of the company would reach up to 60,000 tons.
These two new plants will empower us to achieve our goal of ramping
up our operations to meet increasing demand for our high quality
Carbon products in the global markets."
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong
Carbon Co., Ltd., manufactures carbon and graphite based products
in China. The company is the largest wholesale supplier of fine
grain and high purity graphite in China and one of the nation's top
overall producers of carbon and graphite products. Fine grain
graphite is widely used in smelting for colored metals and
rare-earth metal smelting as well as the manufacture of molds. High
purity graphite is used in metallurgy, mechanical industry,
aviation, electronic, atomic energy, chemical industry, food
industry and a variety of other fields. In September 2007, the
company was approved and designated by Ministry of Science &
Technology as a "National Hi-tech Enterprise." Of the 400 plus
carbon graphite producers in China, China Carbon is the only
non-state-owned company to receive this honor. For more
information, visit http://www.chinacarbongroup.com.
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of the Company and its subsidiary
companies. These forward-looking statements are often identified by
the use of forward-looking terminology such as "believes,"
"expects" or similar expressions. Such forward-looking statements
involve known and unknown risks and uncertainties that may cause
actual results to be materially different from those described
herein as anticipated, believed, estimated or expected. Investors
should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors.
CONTACT: Nuwa Group
Investor Relations:
Mr. Kevin Fickle
+1-925-330-8315
Kevin@nuwagroup.com
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