Shengtai Pharmaceutical, Inc. Announces Progress of Trial Production and Quality Control Tests at New Glucose Facility
June 17 2008 - 8:00AM
PR Newswire (US)
WEIFANG, Shandong, China, June 17 /Xinhua-PRNewswire-FirstCall/ --
Shengtai Pharmaceutical, Inc. (OTC:SGTI) (BULLETIN BOARD: SGTI)
("Shengtai Pharmaceutical" or "the Company"), a leading
manufacturer and distributor of high-quality, pharmaceutical grade
glucose products in China, today provided an update on the progress
of trial production and quality control tests at its new glucose
plant. Shengtai Pharmaceutical has nearly finished the construction
of the new glucose production complex with expected annual
production capacity of 120,000 metric tons. The new facility has
been equipped with state-of-the-art, high-tech operational machines
and since May 2008, the Company successfully launched trial
production of glucose products. This facility combined with the
Company's existing glucose facility will provide total production
capacity of 210,000 metric tons of glucose per year. Once the plant
is fully operational, Shengtai's glucose quality will be able to
match that produced in the rest of the world. The trial production
and quality tests are categorized by products -- food and beverage
grade glucose, monohydrate glucose and anhydrous glucose. The
Company has adopted a series of production and quality control
tests to measure the results of the trial production stage,
including pH scale, specific gravity, DE scale, temperature and
luminousness. The trial production results for food and beverage
grade glucose were the first to pass the tests due to their
relatively lower testing standards. Monohydrate glucose and
anhydrous glucose products are still in trial production and
undergoing quality control tests due to their higher testing
standards. The Company still needs to install supplemental
equipment to complete their tests. "We expect the monohydrate
glucose and anhydrous glucose trial production and quality tests
will be able to meet all production requirements and testing
standards by the end of June 2008," said Chairman and CEO, Mr.
Qingtai Liu, "We will start our official production as soon as we
successfully complete trial production and related tests, and
expect the new glucose facility to reach its full production
capacity in about one and a half years. More cornstarch produced
from our new cornstarch production facility will be utilized
internally to produce glucose out of our new glucose facility,
which should improve our overall gross profit margin. The
additional contribution from our new glucose plant should further
satisfy the robust demand for glucose products, especially for
pharmaceutical grade glucose products." About Shengtai
Pharmaceutical, Inc. Shengtai Pharmaceutical, Inc. through its
wholly-owned subsidiary Shengtai Holding, Inc. (SHI), a New Jersey
corporation, and the Chinese operating company of Weifang Shengtai
Pharmaceutical Co., Ltd., is a leading manufacturer and supplier of
pharmaceutical grade glucose used for medical purposes, and the
glucose and cornstarch products for the food and beverage industry
and for industrial production in China. For more information about
Shengtai Pharmaceutical, Inc., please visit
http://www.shengtaipharmaceutical.com/ . Safe Harbor Statement Safe
Harbor Statement Under the Private Securities Litigation Reform Act
of 1995: Certain statements in this press release and oral
statements made by the Company, constitute forward-looking
statements for purposes of the safe harbor provisions under The
Private Securities Litigation Reform Act of 1995. These statements
include, without limitation, statements regarding our ability to
prepare the company for growth, the Company's planned capacity
expansion in 2008 and predictions and guidance relating to the
Company's future financial performance. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs but they involve risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements, which may include,
but are not limited to, such factors as unanticipated changes in
product demand especially in the pharmaceutical industry, pricing
and demand trends for the Company's products, changes to government
regulations, risk associated with operation of the Company's new
facilities, risk associated with large scale implementation of the
company's business plan, the ability to attract new customers,
ability to increase its product's applications, cost of raw
materials, downturns in the Chinese economy, and other information
detailed from time to time in the Company's filings and future
filings with the United States Securities and Exchange Commission.
Investors are urged to consider these factors carefully in
evaluating the forward-looking statements herein and are cautioned
not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by this cautionary statement.
The forward-looking statements made herein speak only as of the
date of this press release and the Company undertakes no duty to
update any forward-looking statement to conform the statement to
actual results or changes in the company's expectations. For more
information, please contact: Company Contact: Ms. Melody Shi CFO
Shengtai Pharmaceutical, Inc. Tel: +1-949-468-7078 Email: Investor
Relations Contact: Mr. Crocker Coulson President CCG Elite Investor
Relations Tel: +1-646-213-1915 (NY Office) Email: Web:
http://www.ccgelite.com/ DATASOURCE: Shengtai Pharmaceutical, Inc.
CONTACT: Company Contact: Ms. Melody Shi, CFO of Shengtai
Pharmaceutical, Inc., +1-949-468-7078, or ; Or Investor Relations
Contact: Mr. Crocker Coulson, President of CCG Elite Investor
Relations, +1- 646-213-1915 (NY Office), or Web site:
http://www.shengtaipharmaceutical.com/ http://www.ccgelite.com/
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