NINGBO, China, March 5, 2012 /PRNewswire-Asia-FirstCall/ -- Keyuan Petrochemicals Inc. (OTCQB: KEYP), ("Keyuan" or "the Company"), an independent manufacturer and supplier of various petrochemical products in China, today announced preliminary production results for the fourth quarter and full year 2011, which exceeded previously announced revenue and production guidance of $625.0 million and 570,000 MT, respectively. The Company also announced it has commenced operation of a 35-ton boiler at its petrochemical manufacturing facility as a means to reduce electricity costs for Keyuan while having a positive impact on the local environmental.
Preliminary 2011 Results:
The Company provided preliminary, unaudited production results for the fourth quarter and full year 2011:
Petrochemical production (metric tons):
Total Revenues (Million):
The Company will report fourth quarter and full year 2011 results in mid-late March 2012. Additional information will be provided once the details have been finalized.
Keyuan brought online a 35-ton boiler that converts waste gas from its petrochemicals production to produce steam, which is then used to generate electricity. The new facility reduces energy consumption and unnecessary gas emissions. Additionally, the Company can reduce its dependence on outside sources for electricity and lower its costs by approximately $4.8 million per year.
"We constantly strive to be more efficient and environmentally friendly," stated Mr. Chunfeng Tao, Chairman and Chief Executive Officer of Keyuan Petrochemicals Inc. "As we gain more experience operating our production lines, we are finding diverse ways to increase our output and reduce our costs. This initiative coupled with the addition of higher margin products such as SBS, will help deliver greater overall margins for 2012."
About Keyuan Petrochemicals, Inc.
Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Having commenced production in October 2010, Keyuan's operations include an annual petrochemical manufacturing design capacity of 720,000 MT for a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods, and a technology that supports the manufacturing process with low raw material costs and high utilization and yields. In order to meet increasing market demand, Keyuan plans to expand its manufacturing capacity to include a SBS production facility which was completed in September 2011 and one production line has entered into commercial production, additional storage capacity, a raw material pre-treatment facility, an asphalt production facility, and an ABS production facility.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of Keyuan Petrochemicals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the impact of the proceeds from the private placement on the Company's short term business and operations, the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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SOURCE Keyuan Petrochemicals, Inc.