NEW YORK, Oct. 5, 2010 (GLOBE NEWSWIRE) -- 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 overall producers of carbon and graphite products, today announced it has started construction on a new forming and baking plant with an initial budgeted investment outlay of approximately $13.5 million; this expansion will further increase the company's production capacity to meet the growing demand for high purity products in the global market. Construction for both plants is planned to be completed by the end of June 2011.
The budget for the forming plant and the baking plant is $6 million and $7.5 million, respectively. The new forming plant will specialize in manufacturing large size ultra high graphite electrode, high purity graphite and fine gain graphite. In addition, the new baking plant will have 36 furnaces, totaling 160 meters in length, and will include 30,000 tons capacity, making it the largest baking plant in China's graphite industry.
"We believe we have sufficient cash on hand and from operations, together with our bank facility, to expand our factory capacity and continue to support our business," said Donghai Yu, the Chief Executive Officer of China Carbon. "As of today, we already have 30,000 tons production capacity; which can currently be broken down into the following segments; 5,000 tons of graphite electrodes, 10,000 tons of fine grain graphite, and 15,000 tons of high purity graphite. As soon as the two projects are completed, the total production capacity of the company would reach up to 60,000 tons. These two new plants will empower us to achieve our goal of ramping up our operations to meet increasing demand for our high quality Carbon products in the global markets."
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong Carbon Co., Ltd., manufactures carbon and graphite 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 Ministry of Science & Technology as a "National Hi-tech Enterprise." Of the 400 plus carbon graphite producers in China, China Carbon is the only non-state-owned company to receive this honor. For more information, visit http://www.chinacarbongroup.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.
CONTACT: Nuwa Group Investor Relations: Mr. Kevin Fickle +1-925-330-8315 Kevin@nuwagroup.com