ZHENGZHOU, China, Dec. 7, 2010 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (Nasdaq: CVVT) ("China Valves" or the "Company"), a leading Chinese metal valve manufacturer, today announced that the Company has received a purchase order from Beijing China-Petroleum Everbright Energy Technology Co., Ltd. (CPEEC) to supply large diameter high pressure singles lit welded ball valves for the Sino-Kazakhstan oil pipeline project, and a purchase order from Yangzi Petrochemical for 24-way rotary valves. The two purchase orders total approximately $10 million.
The large diameter high pressure singles lit welded ball valves will be used for compressing stations, while the 24-way rotary valves will be used for the separation of liquid from gas.
The above mentioned valves will be made by China Valve's subsidiary Shanghai Pudong Hanwei Valve Co., Ltd., which is one of two companies in the world that owns the technology to manufacture 24-way rotary valves. Moreover, only a limited number of manufacturers in China have the capability to make large diameter high pressure singles lit welded ball valves and oil pipeline flat gate valves.
China Valves has identified international and domestic large-scale projects as a strategic focus and established a department for the management of large projects. The department tracks project progress and has made substantial advances in terms of processing several large orders. At present, the Company has a backlog of nearly $100 million, expected to be realized by the end of next year. This backlog lays a strong foundation for a successful 2011.
Mr. Siping Fang, Chairman of China Valves concluded: "We are pleased with the contracts signed to date and are eager to expand our participation also in other high-profile large-scale oil and gas pipeline projects as they help strengthen our presence in the segment and demonstrate our capability to manufacture high-quality high-end products. Supported by the steady progress in the Sino-Kazakhstan pipeline project and national petrochemical projects s, we expect our Company to generate a more diversified profit growth and create more value for investors."
About the Sino-Kazakhstan project
The Sino-Kazakhstan Project, an essential natural gas pipeline in Central Asia, runs approximately 1,833 kilometers (1,139 miles) from the border between Turkmenistan and Uzbekistan to Xinjiang, China and was initiated in July 2008. The first phase of the pipeline became operational in December 2009 and the second phase, a pipeline running parallel with the first phase, is scheduled to be completed by the end of 2010 and to start supplying natural gas in 2011. The entire Sino-Kazakhstan Project is expected to be completed by December 2012. When both pipelines are running at capacity in 2013, the Ministry of Commerce expects total supply capacity to reach 40 billion cubic meters. In 2010, the Sino-Kazakhstan Project is expected to supply six billion cubic meters of natural gas from Turkmenistan to China.
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co., Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., Tai Zhou Taide Valve Co., Ltd., Yangzhou Rock Valve Lock Technology Co., Ltd., China Valve Technology (Changsha) Valve Co., Ltd. and Shanghai Pudong Hanwei Valve Co., Ltd., is engaged in the development, manufacturing 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 through extensive research and development and owns a number of patents. It enjoys significant domestic market share 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 access capital for expansion, 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 any forward-looking statements, whether as a result of new information, future events, or otherwise. 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.
China Valves Technology, Inc.
Renrui Tang, CFO
CCG Investor Relations
Linda Salo, Senior Financial Writer
Tel: +1 646-922-0894
Crocker Coulson, President
Tel: +1 646-213-1915
SOURCE China Valves Technology, Inc.