China Agritech Updates Plans For Capacity Expansion in Chongqing City and Xinjiang Province
February 16 2007 - 8:30AM
PR Newswire (US)
BEIJING, Feb. 16 /Xinhua-PRNewswire-FirstCall/ -- China Agritech,
Inc. (OTC:CAGC) (BULLETIN BOARD: CAGC) ('China Agritech'), one of
the largest liquid fertilizer manufacturers in China, announced
that its new facilities in Chongqing City and Xinjiang Province are
expected to begin production by March 2007 and May 2007
respectively. After successfully building two new factories in
Beijing and Anhui Province in 2006, China Agritech will continue
expanding capacity in new regions of China. Chongqing is the
largest city in southwestern China and one of the country's most
important agriculture areas with about 1.4 million hectares of
arable land. The Chongqing factory spans 6,000 square meters and
has initial production capacity of 2,000 metric tons of liquid
organic fertilizer per year. The facility will produce China
Agritech's newly introduced 'Green Vitality' product. Items sold
from this factory will be distributed through 10 company-owned
sales offices covering the Sichuan, Yunnan, Guizhou Provinces. The
Xinjiang factory, located in Urumqi city in Xinjiang Province,
northwestern China, has initial production capacity of 2,000 metric
tons of liquid organic fertilizer per year. Xinjiang Province has
the largest amount of arable land in China. China Agritech plans to
begin production by May, which corresponds to the beginning of the
main agriculture season. The facility in Xinjiang will primarily
supply large state-owned farms through its wholesale channel as
well as distributors in Russia and western Asia. 'With the planned
addition of these two production facilities, China Agritech's
production capacity will be 13,000 metric tons per year, which is a
50% increase in capacity from the 9,000 metric tons at the end of
2006 and a 160% increase from our capacity at the end of 2005,'
commented Mr.Yu Chang, President and CEO of China Agritech. 'We are
also pleased with the progress we have made in establishing our
sales and distribution channels. Our distribution network, which
supports our Beijing, Anhui, Chongqing and Xinjiang factories,
includes 30 sales offices, 600 sales agencies, and 6,000 points of
retail presence at the village level. We also have 95% of our
retail presence established at this time and expect to be in all
our target retail markets by the end of February.' About China
Agritech Inc. China Agritech is engaged in the development,
manufacturing and distribution of organic liquid compound
fertilizers and related products in the People's Republic of China.
The company has developed proprietary formulas that provide a
continuous supply of high quality agricultural products while
maintaining soil fertility. The company sells it products to
farmers located in twelve provinces of China including:
Heilongjiang, Hebei, Liaoning, Jilin, Shandong, Inner Mongolia,
Henan, Sichuan, Guangdong, Xinjiang, Yunnan and Guizhou. For more
information visit http://www.chinaagritechinc.com/ . Safe Harbor
Statement 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 such as the inability
to protect the proprietary formula, the price of raw materials, any
liabilities from unknown harmful effects of the product, and
adverse weather conditions. 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. For more
information, please contact: CCG Elite Investor Relations Crocker
Coulson, President, or Leslie J. Richardson Tel: +1-310-231-8600
Email: DATASOURCE: China Agritech Inc. CONTACT: Crocker Coulson,
President, or Leslie J. Richardson of CCG Elite Investor Relations,
+1-310-231-8600, or , for CAGC Web Site:
http://www.chinaagritechinc.com/
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