China Shuangji Cement a leading producer of high-quality Portland cement in Shandong and Hainan Provinces in the People's Republic of China , announced today that the Company is moving closer towards completion of its new Zhaoyuan Cement Production Facility and reiterated its growth outlook.
"Once completed, our production capacity will increase approximately 66% over our current level and we are already seeing strong interest from local contractors to buy cement from this plant once it starts producing cement," stated Mr. Wenji Song, Chairman and President of China Shuangji Cement, Ltd. "We are very excited that we received the capital to complete this project. While the exact completion date is contingent upon how quickly the equipment is integrated and tested, we expect to be operational by the first week of October."
Continued Mr. Song, "China, especially the areas we operate in, is enjoying strong economic growth and the construction industry continues to be driven by demand for new buildings and cement intensive infrastructure projects. We see these conditions continuing as the outlook for the remainder of 2010 and beyond remains positive underpinned by large stimulus spending and strong organic demand. As a result, we are reiterating our strong future growth outlook and expect that with the new plant's increased capacity, our sales and profit run rate will be about 66% higher than it is now. That means in the very near future, we will be operating at an annual rate of about $96 million in sales and about $7.5 million net."
As previously announced, China Shuangji secured a non-convertible $3.7 million loan from an individual Chinese investor to complete the construction of its new 1,000,000 metric ton capacity cement factory in Zhaoyuan City, which is located approximately five miles from the Company's former facility. China Shuangji has used the funds to purchase the remaining equipment needed to finish the partially completed plant. To date, much of the building and infrastructure has been completed at the new facility and almost all the equipment has been installed.
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