China Carbon Graphite Group to Open New Facility With 30,000 Ton Annual Capacity
August 04 2011 - 9:24AM
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
operations at its new facility, which includes baking and dipping
plants, will commence later this month and become fully operational
by September 2011.
China Carbon has already completed installations at the facility
as well as testing at the baking plant. The baking plant will go
online later this month and testing at the extrusion press plant
will be finished by September 2011 with operations beginning
shortly thereafter, according to the Company's management team.
Once the facility is completely up and running, China Carbon
anticipates that it will have an annual production capacity of
30,000 tons, which would double the Company's current annual
production capacity. With its expansion efforts, China Carbon looks
to better position itself to meet the growing demand the Company is
seeing for its higher margin products.
When compared to the first quarter of 2010, the Company's sales
more than doubled in the first quarter of 2011, with 80 percent of
its revenues coming from sales of its higher margin products.
Accordingly, China Carbon plans to primarily manufacture its higher
margin products, such as Ultra high power graphite electrodes and
fine grain and high purity graphite products, at its facility.
Donghai Yu, China Carbon's Chief Executive officer, commented,
"We want to diversify our products' applications and enter in as
many markets as possible. Right now, we feel that we have an
excellent opportunity to really enrich our business by providing
more of our higher margin products to some of China's fastest
growing industries, including the aerospace, defense, automotive,
steel and clean-tech industries."
In particular, China Carbon anticipates maintaining and
enhancing its supply of large size, ultra high power graphite
electrodes to Chinese steel plants. Currently, the margin for large
size, ultra high power graphite electrode is high due to the
shortage of supply to demand. In an effort to take advantage of
this trend, the Company is striving to become China first domestic
producer of 800 mm diameter ultra high power graphite
electrodes.
"Our ability to produce higher margin products is one of our key
competitive advantages," added Mr. Yu. "Large size carbon and
graphite manufacturing requires the most sophisticated technologies
but can deliver us more than a 30 percent gross profit margin. We
believe that we are already China's leading manufacturer of large
size carbon and graphite products, and through our capacity
expansion and product development, our goal is to enhance our
production of these products and gain further leverage in the
market."
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
that 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
Mr. Kevin Ma
NUWA Group, LLC
Tel: +1-415-571-3640
Email: qma@nuwagroup.com
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