NINGBO, China, Aug. 7, 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 that it has completed the trial production and comprehensive tests of its second production line for Styrene-Butadiene-Styrene ("SBS") and has now commenced commercial production.
Keyuan completed construction of the new 70,000 tons SBS production facility in September 2011. After several months' of trial production that included various technique tests, the Company started commercial production with the first production line in January 2012. As of June 30, 2012, this production line had produced 13,049 metric tons of SBS. As a result of the trial production, testing and the operational experience gained from the first line, management believes that second production line will be better adjusted and optimized for commercial production. SBS is currently selling at $3,175 per ton in China.
The Company has received positive feedback from the domestic customers about its SBS products. Meanwhile, the Company has started preparation to enter into global markets, reaching out to several potential foreign customers and sending out samples for testing. Some of the potential foreign customers have already expressed their interest in SBS products and intention to purchase as Keyuan's samples have passed their tests.
"In order to provide high quality products, we always make various adjustments and tests according to different industrial and internal standard before the approval of commercial production. The performance of our SBS production facility has surpassed our expectation, both in technique and market acceptance," said Mr. Chunfeng Tao Chairman and Chief Executive Officer of Keyuan Petrochemicals Inc. "We are confident that the full launch of SBS commercial production will bring better profit and returns to the Company and its shareholders."
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.
SOURCE Keyuan Petrochemicals, Inc.