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China Shuangji Cement, Ltd. (CSGJ.OB) Increases Demand from Government Stimulus and Consolidation

|Includes: China Shuangji Cement, Ltd. (CSGJ)

One company that is starting to evolve into a global presence is the China Shuangji Cement Corporation. Located in Zhaoyuan City, China, the young company has become a leading producer of high-quality Portland cement in the Chinese Provinces of Shandong and Hainan. Today, China Shuangji took a major step towards enhancing its future with the announcement that they anticipate new rounds of reorganization in China’s cement industry which will generate further growth.

One prime indicator of China Shuangji’s prediction is a report from China’s Economic Information Daily which is a key publication sponsored by the famed Xinhua News Agency. The July 28 report stated the government’s new Cement Industry Development Policy has now been finalized, and industry insiders believe that a new round of measures encouraging larger enterprises to merge and further eliminate backwards production is about to be unveiled.

The report indicates the policy is expected to encourage new methods of dry cement production and to require more stringent equipment standards for cement producers in order to further upgrade and structurally optimize the industry by 2015. These indicators could help China Shuangji evolve into a prominent company on Wall Street.

Leading the way at China Shaungji is Mr. Wenji Song who serves as the company’s Chairman and President. When asked what this news will mean to the future of China Shaungji, Song was quoted as saying, “We expect the PRC Government’s policy to be a boon to the cement industry in China and to increase demand for our cement as smaller, more inefficient producers continue to shut down and government and local customers require more cement for new infrastructure, housing and other projects. This is being supported by the government’s $586 billion economic stimulus package, which has increased projects involving steel, aluminum, and cement, as well as measures to boost rural consumption by subsidizing procurement of building materials.”

Mr. Song went on to point out, “We are already seeing increased interest from local contractors to buy our cement and have received a 10 year $3.7 million 10% interest loan* that will allow us to complete our new modern cement facility in Zhaoyuan City, which is expected to increase our production capacity by 1,000,000 metric tons to an estimated 2,500,000 metric tons per year. This will solidify our position as a major cement player in fast growing Shandong and Hainan Provinces.”

Currently, China Shuangji is trading in the $0.59 range. With this news today coupled with the fact that the $3.7 million is not convertible into stock and does not have warrants, we could potentially be witnessing a company on the move.

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