China Agritech Opens New Factory in Beijing
September 25 2006 - 9:30AM
PR Newswire (US)
BEIJING, Sept. 25 /Xinhua-PRNewswire-FirstCall/ -- China Agritech,
Inc. (OTC:CAGC) (BULLETIN BOARD: CAGC) ("China Agritech"), one of
the largest liquid compound organic fertilizer manufacturers in the
People's Republic of China (PRC), today announced that its new
facility in Beijing, opened September 20, 2006. The facility serves
as the primary syrup concentrate production center, converting
factory and research and development (R&D) institute. The syrup
production center has capacity for 5,000 metric tons, and will
supply each of the new regional facilities the company plans to
open over the next several years. The converting factory, which is
where the fertilizer formulas are customized to the local region
and plants, has capacity for 2,000 metric tons and will serve the
Hebei, Shandong and Shanxi provinces. This region comprises 19.5
million hectares, or 15%, of China's arable land and uses 8.5
million metric tons, or 18%, of the total fertilizer used in China
each year. China Agritech already has nine regional sales centers
established in this region. The relocation of the Company's R&D
center to Beijing is a significant step in establishing China
Agritech as a national company in the PRC. The new location allows
for better communication with important government agencies, such
as the Ministry of Agriculture, which should help expedite the
expansion throughout China and support the company's R&D
initiatives. "We are very excited to have reached this critical
milestone as we move to become a national company in the PRC and
the leading national brand in liquid compound organic fertilizer.
We initiated our expansion earlier this year with the opening of
our Anhui facility in July and plan to continue building new
facilities as we strategically target new regions in China and
internationally," commented Mr. Chang, CEO of China Agritech. China
Agritech plans to open additional converting facilities in Xinjinag
and Chongqing by year-end. Once all four facilities are
operational, the company will have capacity for 13,000 metric tons,
a 160% increase in capacity from the end of 2005. Every 1,000
metric tons of additional converting capacity equates to
approximately $7.0 million in potential annual sales. About China
Agritech China Agritech is engaged in the development,
manufacturing and distribution of high quality, environmentally
friendly liquid compound organic fertilizers and related products
in the People's Republic of China. The liquid compound organic
fertilizer products are manufactured using a proprietary production
method and formulas and are used as a supplement to granular
fertilizer. The Company has a ten-year history of selling its
products in northern China and is currently expanding domestically
and internationally. The statements contained in this Release that
are not purely historical are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, including without
limitation, statements regarding the Company's expectations, hopes,
beliefs, intentions or strategies regarding the future. These
forward- looking statements are based on the Company's current
expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that
future developments affecting the Company will be those anticipated
by the Company. These forward-looking statements involve a number
of risks, uncertainties (some of which are beyond the control of
the Company) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by such forward- looking statements. The Company undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws. Contact Information: CCG Elite Investor Relations China
Agritech, Inc. Crocker Coulson, President Richard Dean, U.S.
Representative (310) 231-8600 ext. 103 (716) 626-3535 DATASOURCE:
China Agritech, Inc. CONTACT: Crocker Coulson, President, CCG Elite
Investor Relations, +1-310-231-8600 ext. 103, , for China Agritech;
Richard Dean, U.S. Representative, China Agritech, Inc.,
+1-716-626-3535,
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