XI'AN, China, March 18, 2011 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. ( the "Company," OTC: CHBU), a manufacturer and distributor of organic agricultural application products in China, announced its plan for construction of a Xinsheng Shiji Center of Manufacturing and Logistics located in Xi'an, China.
On November 12, 2010, the Company, through its operating subsidiary Shaanxi Xinsheng Centennial Agriculture & Technology Co., Ltd. ("Xinsheng"), entered into a Land Leasing Contract (the "Agreement") with Xi'an Shishang Weiyang Investment & Management, Inc. (the "Lessor") pursuant to which the Company leased 24 mu of land (approximately 3.9 acres) located in Xi'an, China.
The Company plans to build facilities aggregating approximately 10,000 square meter (107,600 square feet) consisting of manufacturing, research and warehouse facilities on the leased property, which will include the annual capacity to manufacture 11,000 tons of products and a warehouse with a storage capacity of 40,000 tons per annum. After completion of these construction, the Xinsheng Shiji Center will contribute an estimated revenue of RMB 300 million (approximately $45 million) from its manufacturing facilities and RMB 40 million (approximately $6 million) from its warehousing and logistic facilities. The estimated budget for the first stage of construction is RMB 26,000,000 (approximately $3,940,000). The estimated construction period is approximately four months for the first stage.
Mr. Liping Deng, Chief Executive Officer, President, and Director of the Company, commented, "We are succeeding in establishing our own sales channel, which has helped us to promote our products and to increase our sales. We currently have over 500 branded stores located in Shanxi, Hunan and Sichuan provinces. The construction of the Xinsheng Shiji Center of Manufacturing and Logistics will help us to meet the demand for our further developing. We believe the Xinsheng Shiji Center will provide a solid foundation for our future development."
About China Agri-Business, Inc.
China Agri-Business, Inc., through its operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd., manufactures and sells non-toxic fertilizer, bactericide, and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (however, our products themselves do not bear the "AA green food" designation). The Company's two primary product groups are organic fertilizers (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton, fruit plants, and orchard trees. The products can be used alone or as supplements with other products. The Company's Xinsheng manufacturing facilities are located in Xi'an, Shaanxi province, China. For more information about China Agri, please visit http://www.chinaagri-business.com.
This news release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "continue," "could," "estimates," "expects," "future," "goal," "hopes," "intends," "may," "objective," "plans," "potential," "scheduled," "seek," "should," or "will" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We caution you that no statements contained in this news release should be construed as a guarantee or assurance of future performance or results or the implementation of our current plans. You should not place undue reliance upon any forward-looking statements. Forward-looking statements involve risks and uncertainties, including those discussed under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and in other reports we file with the Securities and Exchange Commission ("SEC"). The actual results that we achieve may differ materially from any forward-looking statements due to the effect of such risks and uncertainties. These forward-looking statements are based on current expectations, and, except as required by law, we assume no obligation to update this information whether as a result of new information, future events, or otherwise. You are urged to carefully review and consider the various disclosures made by us in our Annual Report on Form 10-K for the year ended December 31, 2009 and in our other reports we file with the SEC that attempt to advise interested parties of the risks that may affect our business, financial condition, and results of operations.
For more information, please contact:
Telephone +1 646 623 6999
Mr. Delong Zhou
Chief Financial Officer
Telephone +1 917 825 2997
China Agri-Business, Inc.
Building 2, Unit 1, 15th Floor
Ling Xian Xin Cheng
86 Gaoxin Road
Hi-Tech Industrial Development Zone
Xi'an, Shaanxi, China 710065
Telephone +86 29 6859 6556 or 6557
SOURCE China Agri-Business, Inc