NEW YORK, Jan. 25, 2012 /PRNewswire/ -- Asia Carbon
Industries, Inc. ("Asia Carbon", or
the "Company"), OTCBB:ACRB, today announced its completion of two
infrastructure projects: a gas pipeline and naphthalene oil
processing facility. The self-funded projects will have a positive
impact on the Company's future operations.
Gas Pipeline Project
The Gas Pipeline Project will enable the Company to use natural
gas as fuel for production instead of coal tar oil. Using natural
gas as fuel is far cleaner than coal tar oil, the traditional fuel.
The Company invested approximately $2.5
million (approximately 16 million Renminbi ("RMB") for the
construction of the pipeline, which was initiated in June of 2011,
and completed in December 2011.
Utilization of natural gas will not only result in fewer
emissions, it will also reduce the Company's energy costs.
Management estimates the savings associated with the switch will be
approximately $1.5 million
(approximately 9.6 million RMB) per
year, when operating at full capacity.
Naphthalene Oil Process Project
Asia Carbon began selling
Naphthalene oil, a by-product of the carbon black production
process in July, 2011. As demand continued to grow, the Company
decided to increase its refining and storage capacity. Asia Carbon invested approximately $3 million (approximately 18.6 million RMB) in the facility which has the
capacity to process an additional 2,400 tons naphthalene per year.
Construction was completed in December
2011. At the current pricing, this Naphthalene project would
contribute approximately $1.7 million
in revenue, at full capacity.
Ms. Yao Guoyun, Asia Carbon's Chairwoman of the Board and Chief
Executive Officer, commented, "We are very pleased to announce the
completion of both gas pipeline and naphthalene projects at the end
of 2011, as they represent an important step in our expansion plans
for Asia Carbon. Together, these
projects are expected to increase revenues and improve margins
going forward. This contribution will also help us to offset any
negative impact from increases in raw material pricing."
Ms. Yao went on to say, "In order to facilitate our ability to
meet the growing demand for our product, we are building a new
3,700 square meters (approximately 40,000 square feet) warehouse
for our carbon black products. We estimate the cost for this
warehouse will be approximately US$1
million and anticipate construction will be completed by the
end of the first quarter 2012."
This release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such State.
About Asia Carbon Industries, Inc.
Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high
quality carbon black products under the brand name "Great Double
Star." The Company was established in 2003 in Shanxi, China's highest coal producing
province. Asia Carbon is one of the
top ten carbon black producers in the province and has established
relationships with a high-profile customer base. The Company went
public in 2010 through a registration statement on Form S-1 which
was declared effective by the SEC on October
26, 2010, and is currently in the process of expanding its
manufacturing capacity to meet the anticipated demand.
Forward-looking statements:
The above news release contains forward-looking statements. The
statements contained in this document that are not statements of
historical fact, including but not limited to, statements
identified by the use of terms such as "anticipate," "appear,"
"believe," "could," "estimate," "expect," "hope," "indicate,"
"intend," "likely," "may," "might," "plan," "potential," "project,"
"seek," "should," "will," "would," and other variations or negative
expressions of these terms, including statements related to
expected market trends and the Company's performance, are all
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve a number of
risks and uncertainties. These statements are based on assumptions
that management believes are reasonable based on currently
available information, and include statements regarding the intent,
belief or current expectations of the Company and its management.
Prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performances, and are
subject to a wide range of external factors, uncertainties,
business risks, and other risks identified in filings made by the
company with the Securities and Exchange Commission. Actual results
may differ materially from those indicated by such forward-looking
statements. The Company expressly disclaims any obligation or
undertaking to update or revise any forward-looking statement
contained herein to reflect any change in the company's
expectations with regard thereto or any change in events,
conditions or circumstances upon which any statement is based.
Company contact: Michael
Segal
Asia Carbon Industries, Inc.
Phone +1-646-623-6999
SOURCE Asia Carbon Industries, Inc.