The Daqing Phase III facility is on schedule to become operational in January 2011, which will expand the Company's total production capacity by 120,000 tons, or 46%, to 380,000 tons. Of the increased 120,000 tons capacity, the Company has already won pre-sale letters of intent totaling 107,000 tons, or 89% of the increased capacity. For the full year of 2011, Borun's Daqing facility and Shouguang facility together have already entered letters of intent with customers to sell a total of 305 thousand tons of edible alcohol, accounting for over 80% of Borun's expanded total production capacity.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented, "Driven by our strong reputation in the industry and the robust market demand for our edible alcohol, we are very pleased with our exceptional pre-sale success. We also made significant progress with selling into Sichuan province, the largest Baijiu production base in China, as we continue to broaden our customer base. The combination of our pre-sale success and the continued strong market demand for our by-products, including DDGS feed, corn germ, carbon dioxide, and the newly-introduced crude corn oil, provides us with excellent revenue visibility for 2011. As a result, we are excited with our Daqing Phase III expansion, and we are confident that the nearly 50% increase in our total capacity will drive strong revenue and profit growth in 2011."
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, Corn Germ and liquid carbon dioxide 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://ir.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.
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our products, industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially include risks and uncertainties, including but not limited to, the possibility that the customers may not perform their obligations under the pre-sale letters of intent and other risks identified in the Company's SEC filings. Actual results, events and performance may differ materially from those presented herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.