NEW YORK, July 2, 2012 /PRNewswire-Asia/ -- Asia Carbon Industries, Inc. ("Asia Carbon", or the "Company") today announced that it has begun construction of a 3000 KW power plant. Utilizing residual heat generated from the Company's carbon black manufacturing process, the plant's 3000 KW capacity will satisfy the Company's electricity needs for the foreseeable future.
The budget for construction of the facility is approximately $6.3 million, which will be fully funded by Company operations. Expected to be operational early in the fourth quarter of this year, management estimates that the facility will reduce Asia Carbons' electricity expenses by approximately $1.3 million annually.
Ms. Yao Guoyun, Asia Carbon's Chairwoman of the Board and Chief Executive Officer, commented, "This power plant is an important step in the Company's long-term expansion plan. The benefits are financial and environmental. We believe it will not only result in significant savings to our cost of production, but also reduce the negative impact on the environment, which we are extremely proud of."
Ms. Yao went on to say "The facility will also reduce our reliance on the local electric supply, which can be erratic at times. This independence will greatly facilitate our ability to continue the efficient expansion of our production capacity, which is our overall objective."
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.
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 except as required by applicable law and regulations.
Asia Carbon Industries, Inc.
SOURCE Asia Carbon Industries, Inc.