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    China Gengsheng Minerals, Inc. Wins $1 Million Order for Fracture Proppants from a North American Distributor

  • China Aluminium Network
  • Post Time: 2009/2/19
  • Click Amount: 425

    China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has signed fracture proppant supply contracts worth a total value of $1 million with a distributor to supply oil fields in North America. All the deliveries will be fulfilled by April 2009.


    Fracture proppants are light, bauxite-based, grain-like materials that have a round and smooth surface and a quality of resisting high pressure and acid corrosion. They are used by oil and gas drillers to extract pockets of oil and natural gas scattered underground. Gengsheng initially signed proppant contracts with a total value of $3.54 million with the same North American-based distributor in late 2008. The Company has shipped approximately $2.2 million of the materials to date.


    Also today, the Company announced it is expecting to double the production capacity of its fracture proppant business from 30,000 tons per year to 60,000 tons per year in the city of Gongyi, Henan Province. The expansion will add new equipment to the existing facilities and the new capacity is expected to start commercial operations by April 2009.


    "I am pleased to announce the renewal of our contracts with a foreign buyer of proppants," said Mr. Shunqing Zhang, Chairman of Gengsheng. "We are also excited that our production capacity increase for this strategically important product will be completed by April. In light of the export market growth for our products, we believe now is the right time to expand our capacity to take advantage of the market demand."

    Source: FOX BUSINESS
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