China Carbon Graphite Group, Inc. Completes Construction of Its New 30,000-Ton Production Facility
January 24 2011 - 10:00AM
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
manufacturers of carbon and graphite products, today announced that
it has completed the exterior construction of its new 30,000-ton
plant, and will start installation and shakedown testing of a
4200-ton compressor and 36 annular kilns soon. The new facilities
are expected to begin production by June 2011.
The new plant will focus on manufacturing ultra-high graphite
electrodes with a diameter ranging from 600 to 800mm, fine grain,
and high-purity graphite. The industrial application of these
widely used products, which includes, aerospace, defense,
automotive and clean tech end products, currently carries the
greatest demand of all forms of graphite.
According to the Company, this new plant will have the largest
and the most technologically advanced equipment in China capable of
producing ultra-high electrodes with a diameter as large as 800 mm,
and rounded fine grain electrodes with a diameter as large as 600
mm. The demand of these two types of graphite products is currently
overwhelming. The expansion makes the Company China's first
domestic producer of 800 mm diameter ultra-high electrodes and also
further strengthens the Company's leading position in China's fine
grain graphite market.
"Once new facilities are fully operational, our production
capacity will be doubled from our current level," said Donghai Yu,
China Carbon's CEO. "This new plant will focus on manufacturing
higher margin products, including ultra high electrodes, and fine
grain and high-purity graphite, with a gross profit margin of 30%,
35% and 21-29%, respectively. As a result, we fully expect to have
higher profitability beginning in 2011 from a combination of
increased production, higher margin sales and our ability of
locking in raw material costs by using our $27 million loan."
"This expansion represents an important step for China Carbon
that will solidify its status as one of the most significant
manufacturers of graphite and related products in China."
About Graphite
Graphite as a material has the following desirable features: a
compact and well-distributed structure, an ability to handle and
perform in high and intense heat environments, good electrical
conductivity, compression resistance, and ease of processing. It is
widely used to manufacture high-temperature crucibles used in
metallurgy, as a lubricant in mechanical manufacturing, for
electrodes and pencil lead. It is also widely used as a refractory
material and mold coating in the metallurgical industry, as a
stabilizer of fire in certain military applications, as a carbon
brush in the electric motor industry, as electrodes in battery
manufacturing, and is used as a catalyst in the chemical fertilizer
industry. By deep processing crystalline flake graphite, high-tech
products such as colloidal graphite, graphite sealing materials and
composite materials, graphite products and graphite wear-reducing
additives can also be produced, which products have become
important non-metal mineral raw materials for numerous industrial
applications.
Graphite is also used in the nuclear power and in national
defense industries. It serves as an effective neutron moderator in
atomic reactors, the most common of which is the uranium-graphite
reactor. In an atomic reactor, moderating materials should have a
high-melting point, stability and be corrosion resistant. Graphite
meets all of these requirements. Graphite used for this purpose
should be of very high purity, and in particular, should display a
limited boron content of less than 0.5 PPM. In the national defense
industry, graphite is also used to produce solid fuel nozzles used
in rockets, missile nose cones, components of space navigation
equipment, as a heat insulating material and an anti-radiation
material.
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong
Carbon Co., Ltd., manufactures graphite and 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 the Ministry of Science
& Technology as a "National Hi-tech Enterprise." Of the more
than 400 carbon graphite producers in China, China Carbon is the
only non-state-owned company to receive this honor. For more
information, visit www.chinacarboninc.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, LLC
Investor Contact:
Mr. Kevin Fickle
+1-925-330-8315
Kevin@nuwagroup.com
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