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[January 2009]
Gengsheng Minerals Renews Refractory Full-Service Contracts With Two Key Customers
China Gengsheng Minerals Inc (Gongyi, China) has announced that it has renewed its full-service contracts for refractory products with two key customers for another year.
The company provides ‘full services’ to China's steel mills in the form of refractory product installation, testing, maintenance, repair and replacement. Full-service customers contributed approximately 51% of the company's total sales in 2008, compared with 38.3% in 2007.
"I am encouraged by the fact that we were able to renew the contracts with two of our biggest full-service customers at about the same price as last year's," said Shunqing Zhang, Chairman and CEO of the company.
"Full-service programs typically enjoy higher gross margins than straight product sales; they also ensure stable customer relations and regular, monthly payments. And we are constantly seeking to sign new customers in this program, such as the $2-million contract with Hebei Wenfeng Iron and Steel, which we announced on December 3, 2008."
ENDS