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Asia Carbon Industries, Inc. Converting Three Dry Production Lines to More Profitable Specialty Carbon Black Production Lines

Project Expected To Increase Revenues by $8 Million Annually

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NEW YORK, Sept. 27, 2012 /PRNewswire/ -- Asia Carbon Industries, Inc. ("Asia Carbon", or the "Company") today announced that it will begin converting its three dry production lines to specialty carbon black production lines. The project to be funded by cash from operations is expected to begin on October 1, 2012 and finish in about three months. The total cost is approximately $4 million.

The specialty materials to be produced at the new facilities will generate significantly more revenues as a result of the higher sales prices.  In addition, its manufacturing process is significantly cleaner. Specialty carbon black also has a broader range of uses as compared to the more traditional products; these include use as a pigmenting agent, UV stabilizer or conductive agent in a variety of products, such as plastics, toners and printing inks and coating, battery and electrical parts.

The current sales price for specialty carbon black is approximately $2,400 per ton, as compared to approximately $940 per ton for the carbon black now being manufactured at the Company's existing production lines. 

Each of the Company's dry production lines has an annual production capacity of 12,000 tons, operating at approximately 80% capacity, together the three dry production lines generate approximately $27 million revenue per year at the current price levels. Once the renovation has been completed, the production lines will each have an annual capacity of 6,000 tons, for a total of 18,000 tons of specialty carbon black per year.  Projected revenue from specialty carbon black production at similar operating capacity is anticipated to be approximate $35 million annually.

During the production line conversion, the Company will halt production on the existing three production lines. Consequently, management expects revenue for the upcoming fourth quarter may reflect that change.

Ms. Yao Guoyun, Asia Carbon's Chairwoman of the Board and Chief Executive Officer, commented, "This renovation is just another step in Asia Carbon's expansion plan. As with the recently announced construction of an on-site power plant, the benefits of the conversion are both financial and environmental."

Ms. Yao went on to say, "We believe that China's recent stimulus announcement confirms the PRC's government support for domestic growth. It is a good indication for the automotive sector, and as a result, tire manufacturers, currently our primary customer. However, the increased production of specialty products allows the Company to diversify our customer base into other market sectors, and better enables Asia Carbon to participate in China's expected economic growth."

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 25, 2010, and is currently in the process of expanding its manufacturing capacity to meet the anticipated demand.  For more information, visit www.asiacarbonindustries.com.  The Company routinely posts important information on its website.

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 except as required by applicable law and regulations.

Company contact: 
Delong Zhou
Asia Carbon Industries, Inc.
Phone +1-917-825-2997

SOURCE Asia Carbon Industries, Inc.



RELATED LINKS
http://www.asiacarbonindustries.com

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