 |
 |
||||||
[July 2008]
Gengsheng Announces Five-Year Sales Contract for Fine Precision Abrasives
China Gengsheng Minerals Inc (Gongyi, China) has announced that it has signed its first sales contract for its fine precision abrasive products with a Taiwan-based vendor. The term of the contract is five years, with 300-500 metric tons to be delivered each month.
According to the contract, the Taiwanese customer will serve as Gengsheng's exclusive vendor in Taiwan. The company is expecting the first shipment to begin in October 2008.
The abrasives that Gengsheng is supplying are made from silicon carbide (SiC). These are ultra-fine, high-strength pellets with uniform shape and have applications in surface polishing and slicing of precision instruments such as solar panels. The company expects to operate, by the end of this year, a facility that can produce 2,083 metric tons of abrasives per month.
"Our first abrasives sales contract marks a milestone in Gengsheng's history," said Shunqing Zhang, Chairman, CEO and President of Gengsheng. "As we bring more high-end and higher-margin material products into our offerings, we expect to be better positioned to withstand the effects of rising raw material costs and increasing competition in the market place."
Mr Zhang continued: "Currently, the type of abrasives that we are launching is in high demand among solar-energy companies and they are mostly imported from Japan. We expect to see the burgeoning solar industry in China and elsewhere catalyze our rapid growth in this new product".
www.gengsheng.com
ENDS