China Green Agriculture, Inc. Announces Grand Opening of New 40,000-Ton Capacity Production Facility
August 31 2009 - 4:10PM
PR Newswire (US)
Total Annual Capacity Increases to 55,000 Metric Tons of Fertilizer
XI'AN, China, Aug. 31 /PRNewswire-Asia-FirstCall/ -- China Green
Agriculture, Inc. (NYSE Amex: CGA; "China Green Agriculture" or
"the Company"), a leading producer and distributor of humic acid
("HA") based green fertilizer through its wholly owned subsidiary,
Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today
announced the grand opening of its newest production facility in
X'ian, China. The announcement of the new facility was made in May
2008 and the facility began formal production in August 2009. China
Green Agriculture held its grand opening ceremony for the 40,000
ton production line adjacent to its existing 15,000 ton facility on
August 28, 2009. The new facility increases the Company's
production capacity from 15,000 tons per year to 55,000 tons per
year to meet the growing demand for its green fertilizer products.
China Green Agriculture was the first company in China to build a
fully automated manufacturing system which precisely measures and
mixes key ingredients to formulate its unique fertilizer products.
While the Company's current facility incorporates a high degree of
automation, new automated equipment has been added in the new
factory, which increases efficiency and further reduces reliance on
manual labor. These advanced production techniques reduce waste
which in turn reduces costs. In addition, China Green Agriculture
is the first company to install a fully integrated quality control
system with mobile wireless monitoring which enables the Company to
closely supervise its production process in the new facility. China
Green Agriculture currently only manufactures liquid fertilizer
products; however the new facility is capable of producing both
liquid and highly concentrated fertilizer (i.e. powder fertilizer)
and is also the first fertilizer manufacturer in China to apply
microwave technology to its production of highly concentrated
fertilizer. China Green Agriculture's new facilities include 27
vats for mixing ingredients and pharmaceutical grade,
electronically calibrated measuring equipment spread over
approximately 148,000 square feet. The Company expects to reach
full utilization of its 55,000 metric ton capacity over the next
three years. Sales volume is expected to increase 40-45% with a
utilization rate of 35%-38% by the end of the fiscal year 2010.
Formal guidance for fiscal year 2010 will be provided by management
with the fourth quarter and fiscal year 2009 earnings announcement
scheduled for mid-September. "Based on the growing market demand
for our green fertilizer products coupled with our extensive
distribution network, we expect that our increased capacity will be
rapidly absorbed by the Chinese fertilizer market. This facility
will be our growth driver for the fiscal year ending June 30, 2010,
allowing us to meet our revenue and net income targets," commented
Mr. Tao Li, Chairman and CEO of China Green Agriculture. "We
continue to see strong demand within the 27 provinces that we
cover, as the Chinese government seeks to increase farmers' income
and boost the growth of diversified crops, especially for organic
food. By leveraging our new facility we are well positioned to gain
further market share in China's fertilizer market." About China
Green Agriculture, Inc. China Green Agriculture, Inc. produces and
distributes humic acid ("HA") based green fertilizer through its
wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product
Co., Ltd., ("TechTeam"). TechTeam produces and sells over 100
different kinds of fertilizer products per year. All of TechTeam's
fertilizer products are certified by the PRC government as green
food production materials, as stated by the China Green Food
Research Center. TechTeam's fertilizers are highly concentrated
liquids which require an application of approximately 120 ml per mu
per application. Its average end user has approximately four mu of
land (one mu = .165 acres). China Green Agriculture currently
markets its fertilizer products to private wholesalers and
retailers of agricultural farm products in 27 provinces in the PRC.
The leading five provinces by revenue for the three months ended
March 31, 2009 are Shaanxi (12.2%), Shandong (10.6%), Anhui (6.2%),
Xinjiang (6.0%) and Henan (5.4%), which in total accounted for
40.5% of our total fertilizer sales from the sale of our fertilizer
products. For more information, visit http://www.cgagri.com/ . Safe
Harbor Statement This press release contains forward-looking
statements concerning the Company's business, products and
financial results. The Company's actual results may differ
materially from those anticipated in the forward-looking statements
depending on a number of risk factors including, but not limited
to, the following: general economic and business conditions,
development, shipment, market acceptance, additional competition
from existing and new competitors, changes in technology, and
various other factors beyond the Company's control. All
forward-looking statements are expressly qualified in their
entirety by this Cautionary Statement and the risk factors detailed
in the Company's reports filed with the Securities and Exchange
Commission. China Green Agriculture undertakes no duty to revise or
update any forward-looking statements to reflect events or
circumstances after the date of this release For further
information, please contact: China Green Agriculture, Inc. Ms. Ying
Yang, Chief Financial Officer Tel: +1-626-623-2575 Email: HC
International, Inc. Ted Haberfield, Executive VP Tel:
+1-760-755-2716 Email: Web: http://www.hcinternational.net/
DATASOURCE: China Green Agriculture, Inc. CONTACT: China Green
Agriculture, Inc., Ms. Ying Yang, Chief Financial Officer,
+1-626-623-2575, or HC International, Inc., Ted Haberfield,
Executive VP, +1-760-755-2716, for China Green Agriculture, Inc.
Web site: http://www.cgagri.com/ http://www.hcinternational.net/
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