China Shuangji Cement, Ltd. (OTCBB: CSGJ) is a leading producer of high-quality Portland cement in Shandong and Hainan Provinces in the People’s Republic of China. China’s economy continues to expand, and the company forecasts strong demand for the high-grade bulk cement it producers. This cement is being used for general construction and for large infrastructure projects, such as the highway the government is currently building from Longkou to Qingdao. The Chinese government has recently initiated a $586 billion stimulus program, ensuring investment in cement intensive projects for years to come.
Today, the company has received a $3.7 million loan from an individual named Jiping Wen. This loan has no collateral and its term is 10 years with an interest rate of 10%, payable every six months and the principal is not due until maturity. The interest will accrue from January 1, 2010 to December 31, 2020. China Shuangji plans to use the loan to complete the construction of its new state-of-the-art cement factory in Zhaoyuan City, which includes the purchase and installation of new equipment, and for other corporate purposes, such as working capital. The new facility has direct access to a new highway that leads to many of China Shuangji’s customers as well as to nearby ports. It will increase production capacity by 1,000,000 metric tons, or roughly 66%, to an estimated 2,500,000 metric tons per year. China Shuangji currently sells all the cement that it produces, so this upcoming 66% increase in capacity should directly translate into a commensurate increase in sales and profits. To date, the company has received approximately $2 million of the loan amount and expects to receive the remaining balance soon.
In response to the news of this loan, China Shuangji, Inc. is currently trading at $.72, up $.10 or 16.13%.
Mr. Wenji Song, Chairman and President of China Shuangji Cement, Ltd., commented, "We have already purchased, or placed deposits on key production equipment that we need to finish our partially completed new Zhaoyuan cement plant. Finish work and the installation of the new equipment is all that remains at this stage. We are excited to move forward and look forward to bringing this facility online shortly and expanding production."
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