Keyuan Petrochemicals, Inc. Commences Construction on Energy-saving, Gas-fired Steam Boiler
NINGBO, China, July 21, 2010 /PRNewswire via COMTEX/ --
Copyright (C) 2010 PR Newswire. All rights reserved
Keyuan
Petrochemicals, Inc. (OTC Bulletin Board: KYNP), ("Keyuan" or "the Company"),
a leading independent manufacturer and supplier of various petrochemical
products in China, announced today that it has commenced construction on a new
gas-fired boiler that will make the Company self-sufficient for steam gas and
save $1.76 million per year, approximately 30%, in steam supply costs. Total
investment in the project, expected to be completed by the end of November, is
estimated at approximately USD $1.47 million.
"Controlling critical supply components, such as steam supply that we use
in our manufacturing processes, has both strategic and economic benefits,"
stated Mr. Chunfeng Tao, founder, chairman and chief executive officer of the
Company. "By adding the boiler, we will be able to manage our own steam
supply and achieve above-industry-average margins by reducing energy related
costs and improving utilization rates. In addition to this and other process
improvements, as previously announced, we are also expanding our overall
production and facility capacity in order to capitalize on China's growing
demand for refined petrochemical products."
Growing demand driven by China's robust economic growth, coupled with
under-developed domestic production capacity, has led to an imbalance in
supply and demand for refined petrochemical products that is likely to persist
for many years. Due to the supply-demand imbalance that exists in China,
Keyuan's customer order requests for 2010 have exceeded its current annual
production capacity. At March 31, 2010, Keyuan had annual petrochemical
manufacturing capacity of 550,000 MT of a variety of petrochemical products,
including BTX aromatics. In order to grow its business to meet its backlog and
increasing customer demand, Keyuan plans to expand its petrochemical
manufacturing capacity to 600,000 MT in 2011. The Company also plans to double
its storage capacity to 200,000 MT by the end of 2011, and to add a new raw
material pre-treatment facility and an asphalt production facility in 2012.
About Keyuan Petrochemicals, Inc.
Keyuan Petrochemicals, Inc., established in 2007 and operating through its
wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo,
China and is a leading independent manufacturer and supplier of various
petrochemical products. Having commenced production in October 2009, Keyuan's
operations include an annual petrochemical manufacturing capacity of 550,000
MT of a variety of petrochemical products, with facilities for the storage and
loading of raw materials and finished goods, and a technology that supports
the manufacturing process with low raw material costs and high utilization and
yields. In order to meet increasing market demand, Keyuan plans to expand its
manufacturing capacity to include a raw material pre-treatment facility,
additional storage capacity and an asphalt production facility.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements"
relating to the business of Keyuan Petrochemicals, Inc., and its subsidiary
companies. All statements, other than statements of historical fact included
herein are "forward-looking statements" including statements regarding the
impact of the proceeds from the private placement on the Company's short term
business and operations, the general ability of the Company to achieve its
commercial objectives, including the ability of the Company to sustain growth;
the business strategy, plans and objectives of the Company and its
subsidiaries; and any other statements of non-historical information. These
forward looking statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions, involve
known and unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic reports that are
filed with the Securities and Exchange Commission and available on its website
(http://www.sec.gov ). All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward looking statements.
SOURCE Keyuan Petrochemicals, Inc.
|
|