China Carbon Graphite Group Expects Continued Growth Despite Recent Events in Japan
March 23 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
its management believes that the ensuing problems with Japan's
nuclear facilities are not expected to diminish the Company's
growth prospects.
Despite the recent earthquake in Japan and subsequent problems
at Japanese nuclear facilities, reports from the Chinese Government
continue to reiterate that nuclear expansion in China will
continue. According to the state-run Xinhua news agency, Chinese
Vice Minister of Environmental Protection Zhang Lijun said: "China
will not change its determination and plan for developing nuclear
power." Currently, there are 13 nuclear power reactors in China and
25 more are under construction, with plans to start construction on
more facilities soon. Each of China's 13 operating nuclear power
reactors requires at least 10,000 tons of nuclear graphite every
year.
In 2012, China Carbon intends to begin producing isostatic
graphite, including solar, semiconductor or nuclear graphite.
Management believes that China Carbon would likely have the support
of the Chinese Government if the Company decides to produce nuclear
graphite, which is used as reflectors within nuclear reactors.
China is asking domestic enterprises to supply the nation's
burgeoning nuclear industry; Chinese companies, like China Carbon,
stand to benefit considerably. China is quickly becoming
independent in regards to nuclear reactor design and construction
and the nation plans to increase domestic manufacturing of nuclear
plants and equipment. China hopes to be completely self-reliant in
respect to the design and project management of their nuclear
facilities as well. China Carbon's position as an established,
large domestic supplier and the Company's continuing research
development activities related to isostatic graphite puts China
Carbon in an excellent position to potentially do well in the
nuclear power industry in the future. In the event that the Chinese
Government chooses in the near future to pursue solar power
expansion instead of nuclear power as a result of the recent
catastrophic events in Japan, China Carbon is confident that it
will be capable of manufacturing solar graphite to meet alternative
energy demands.
China Carbon CEO, Donghai Yu, stated: "China Carbon's market
strategy is extremely flexible. Our technology is applicable to
multiple industries, allowing us to consider market demand before
making any decisions. Regardless of the future developments in
China's nuclear industry, we anticipate that graphite will
increasingly be in demand. Solar graphite is an isostatic graphite,
which is a key component to manufacturing poly-si silicon, which is
currently in short supply but in high demand in the solar industry.
Many foreign poly-si silicon producers are arranging to shift their
production plants to China. As demand increases for nuclear or
isostatic graphite in particular, and graphite in general, China
Carbon looks forward to becoming a prominent supplier of
graphite."
During the course of 2010, China Carbon doubled annual
production capacity from 15,000 tons to 30,000 tons, driving
revenues higher during the nine months ended September 30, 2010.
The Company intends to double annual production capacity again by
June 2011 to 60,000 tons. China Carbon expects to utilize its new
facility, which has an annual production capacity of 30,000 tons,
primarily to produce its existing products, including graphite
electrodes, fine grain graphite and high purity graphite, which are
used in a variety of high-tech applications including aerospace,
defense, automotive and clean tech end products.
In 2012, China Carbon plans to develop isostatic
graphite—including nuclear graphite, solar graphite and
semiconductor graphite—in a separate plant. The Company expects
that $12 million dollars will be needed to purchase an isostatic
molding machine and to construct the new facilities in order to
produce isostatic graphite. The Company anticipates that cash
generated by operations and provided by local Chinese banks should
be sufficient to fund this expansion. The Company is currently
operating at 100% capacity.
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong
Carbon Co., Ltd., manufactures graphite and carbon 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," a distinction
which the Company still holds. 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, please 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, including the risk factors set forth in the
Company's annual report on Form 10-K and quarterly reports on Form
10-Q.
CONTACT: Investor Contact:
Mr. Kevin Fickle
NUWA Group, LLC
Tel: +1-925-330-8315
Email: Kevin@nuwagroup.com
Company Contact:
Donghai Yu
China Carbon Graphite Group, Inc.
Tel: +1-626-589-6525
Email: ir@chinacarboninc.com
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