China Gerui Advanced Materials Initiates Exports of its Specialized Steel Products
ZHENGZHOU, China, June 26, 2012 /PRNewswire-Asia-FirstCall/ -- China Gerui Advanced Materials Group Limited (NASDAQ: CHOP) ("China Gerui," or the "Company"), a leading high-precision, cold-rolled strip steel producer in China, today announced the Company has begun to export its high-end wide- and narrow-strip steel to customers located in Turkey and India.
"We are pleased to initiate exports to Turkey and India, as they represent emerging growth countries with high potential growth in one of our primary end-user applications, the telecommunications sector," said Mr. Mingwang Lu, Chairman and Chief Executive Officer. "The commencement of exporting activities serves as testimony to the quality and brand awareness of our products and serves as an important outlet for our recently-added enhanced production capabilities."
Products exported to date include both wide- and narrow-strip high precision chromium-plated cold-rolled strip steel, to be used as insulation steel tape for wire and cable manufacturing. The products' average thickness is 0.15 mm with a width ranging from 610 mm to 810 mm. Virtually all of the Company's revenue had previously been derived from customers located in China. China Gerui's exporting activities, which began in the second quarter of this year, are intended to diversify its revenue base with the objective of helping the Company gain worldwide exposure to its custom quality products and capabilities.
The terms of sale to the new export customers are generally similar to those of the Company's domestic Chinese customers. Such terms include the requirement that an initial deposit is pre-paid by a customer when the customer contract is signed and the remainder of the customer's payment is received in cash upon delivery.
China Gerui believes that its strategic focus on high-end specialized steel products and increased production capacity has enabled it to extend its reach beyond the domestic market and sees its commencement of exporting activities as an effective means to continue to provide attractive returns on invested capital. The Company plans to pursue additional strategies to optimize the utilization of its value-added in-house production technology and penetrate the high-end cold-rolled steel sector worldwide.
About China Gerui Advanced Materials Group Limited
China Gerui Advanced Materials Group Limited is a leading niche and high value-added steel processing company in China. The Company produces high-end, high-precision, ultra-thin, high- strength, cold-rolled steel products that are characterized by stringent performance and specification requirements that mandate a high degree of manufacturing and engineering expertise. China Gerui's products are not standardized commodity products. Instead, they are tailored to customers' requirements and subsequently incorporated into products manufactured for various applications. The Company sells its products primarily to domestic Chinese customers in a diverse range of industries, including the food packaging, telecommunication, electrical appliance, and construction materials industries. For more information, please visit http://www.geruigroup.com.
Safe Harbor Statement
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SOURCE China Gerui Advanced Materials Group Limited