SHOUGUANG, China, March 26, 2012 /PRNewswire-Asia/ -- China New Borun Corporation (NYSE: BORN; "Borun" or the "Company"), a leading producer and distributor of corn-based edible alcohol in China, today announced that it has completed the pre-purchase of sufficient corn at locked-in prices to cover its production requirements during the coming non-harvest season.
During the recent harvest season, the Company reserved sufficient corn to be used for later production in the non-harvest season through corn sourcing arrangements with local granaries. As a result, the Company has secured 505,000 tons of corn stored at third-party granaries, and it is estimated that all of Borun's 2012 production plans can be sufficiently fulfilled with the corn already on hand.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, remarked, "Having further enhanced our corn purchase and storage capability, we are confident that Borun is well-positioned to use our sourcing advantage to capture more business opportunities in the future. Our ability to lock in attractive prices during the peak harvest season not only provides us with higher cost visibility but also buffers us from potential higher inflation. Our strong relationships with local granaries and our strategic locations in the corn producing regions have helped us achieve this. Together with our successful pre-sales for 2012, we are excited and confident that our assured supply and solid cost visibility will help us continue to operate efficiently and prosper in a cost-rising environment."
About China New Borun Corporation
China New Borun Corporation (NYSE: BORN) is a leading producer and distributor of corn-based edible alcohol in China. Borun's edible alcohol products are primarily sold as an ingredient to producers of baijiu, a popular grain-based alcoholic beverage that is sold throughout China in retail stores, restaurants and bars. The Company also produces DDGS Feed, liquid carbon dioxide and crude corn oil as by-products of edible alcohol production. China New Borun is based in Shouguang, Shandong Province. Additional information about the company can be found at http://www.chinanewborun.com and in documents filed with the U.S. Securities and Exchange Commission, which are available on the SEC's website at www.sec.gov.
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SOURCE China New Borun Corporation