KAIFENG, China , Jan. 6 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (Nasdaq: CVVT) ("China Valves" or the "Company"), a leading metal valve manufacturer with operations in the People's Republic of China (the "PRC"), today announced that the Company's subsidiary, Zhengzhou Zhengdie Valve Co, Ltd. ("Zhengdie"), received a purchase order of $3.0 million for metal sealing butterfly valves and multifunctional slow-closing type check valves from Kunshan Water Group, Inc. ("Kunshan Water").
"The metal sealing butterfly valves and multifunctional slow-closing type check valves are high margin, highly profitable valve products which require advanced production technology to manufacture. We specialize in these high-end products as our ten plus years of experience in improving our production technology and practices provides us with an advantage compared with our less sophisticated competitors," said Mr. Siping Fang , Chairman and CEO of China Valves. "Based on our estimates, we dominate the market share for both products in large metropolitan cities in China such as Beijing and Shanghai , and most of the large provincial cities in China such as Nanjing , Wuhan , and Zhengzhou among others."
Metal sealing butterfly valves are widely used in the oil, chemical, metallurgical, water supply and power supply industries. This type of valve is heat-resistant and pressure-resistant, with anti-corrosion and anti-fraying properties. China Valves' technological advantage enables the Company to produce valves that are more resistant to heat, easier to operate, friction free, and have improved sealing ability, compared with traditional butterfly valves. The orders of metal sealing butterfly valves from Kunshan Water were valued at approximately $2.5 million .
Multifunctional slow-closing type check valves are mainly used in the water supply industry. This type of valve is mainly characterized by its ability to rapidly open and seal the entrance without causing severe water hammer, a pressure surge in the water pipes, and can be used for water of varying quality, ranging from sewage to potable water. Compared to traditional valves, it is lighter and has a more compact structure, weighing only 5% to 25% of traditional valves and measuring only 12.5% to 25% of their structural size. The multifunctional slow-closing type check valve also has a longer life span and is more stable compared to traditional valves. The orders of multifunctional slow-closing type check valves from Kunshan Water were valued at approximately $0.5 million .
"As we have already delivered $1.2 million worth of purchase orders of two-way metal sealing butterfly valves to Kunshan Water in 2009, these orders are another indicator of their trust in our products and our status as a major supplier for this customer," commented Mr. Fang. "We are confident that our production technology and customized service enable us to continue as the number one choice in terms of valve products for many of our clients in China ."
About Kunshan Water Group, Inc
Kunshan Water Group, Inc. is a state-owned water supply enterprise headquartered in Kunshan, Jiangsu province, the PRC. It provides integrated services, including drinking water source maintenance, water supply and treatment, and sewage water treatment. It supplies water to a total acreage of 927 square kilometers (approximately 358 square miles), covering the entire city of Kunshan in Jiangsu province. Its total designed capacity is 1.2 million cubic meters (0.32 billion gallons) of water per day.
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., and Tai Zhou Tai De Valve Co., Ltd. is engaged in development, manufacture and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best known brand names in China's valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products by extensive research and development and owns a number of patents. It enjoys significant domestic market shares and exports to Asia and Europe . For more information, visit http://www.cvalve.com
Safe Harbor Statements
Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise. This press release was developed by China Valves, and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company's stock. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
For more information, please contact: China Valves Technology, Inc. Ray Chen, VP of Investor Relations Tel: +1-650-281-8375 +86-13925279478 Email: [email protected] Web: http://www.cvalve.com CCG Investor Relations Linda Salo, Senior Financial Writer Tel: +1-646-922-0894 Email: [email protected] Crocker Coulson, President Tel: +1-646-213-1915 Email: [email protected] Web: http://www.ccgirasia.com
SOURCE China Valves Technology, Inc.