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China Chemical Corp. Announces Production Update on New MAH Plant Expansion

ZIBO CITY, China, Jan. 25, 2011 (GLOBE NEWSWIRE) -- China Chemical Corp. (OTCBB:CHCC) ("China Chemical" or the "Company"), a manufacturer of organic chemicals for broad consumer goods applications, announced today that its new maleic anhydride ("MAH") facility has completed its testing phase and has begun production.
/ Source: GlobeNewswire

ZIBO CITY, China, Jan. 25, 2011 (GLOBE NEWSWIRE) -- China Chemical Corp. (OTCBB:CHCC) ("China Chemical" or the "Company"), a manufacturer of organic chemicals for broad consumer goods applications, announced today that its new maleic anhydride ("MAH") facility has completed its testing phase and has begun production.

The expansionary facility produces an additional 30,000 tons of capacity. The facility entered the testing phase in late 2010 and became fully operational in early January 2011.

Mr. Lu Feng, Chairman and CEO of China Chemical, stated, "The Company is positioning itself to become a major supplier of essential chemicals in Zibo City, and this new facility is a key factor in our growth plans for 2011. We constructed the facility to meet the growing demand for chemicals in China's manufacturing sector, which is being fueled by increasing domestic consumption. With the new facility, we expect to generate additional revenues from the increased production of MAH as well as its byproducts, steam and acid water."

About China Chemical Corp.

China Chemical Corp. is a Zibo City, China-based manufacturer of organic chemical compounds used in high-performance plastics, PVC, elastic fibers, paints, tires, insulation, flooring, adhesives, medicines, food processing, ink, and paper. The Company's primary products are Phthalic Anhydride (PA) and Maleic Anhydride (MAH), which have a wide variety of applications in the construction, automotive, aviation, marine, and consumer goods industries. China Chemical currently has the capacity to produce 60,000 tons of MAH and 50,000 tons of PA annually. The Company began site development in October 2010 for a 50,000-ton-capacity 1,4 butanediol (BDO) co-generation plant.

For more information about China Chemical Corp., please visit the Company's website at .

Forward-Looking Statements

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. For additional information, readers should carefully review reports or documents the Company files periodically with the Securities and Exchange Commission.

CONTACT: Investor Relations: Dave Gentry, President RedChip Companies, Inc., Ext. 104 Tel: +1-800-733-2447 Email: info@redchip.com Jing Zhang, Chief Representative RedChip Companies Beijing Office Tel: +86 10-8591-0635 Web: http://www.RedChip.com