ZHENGZHOU, China, Dec. 6, 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 worth $15 million for pumped storage inlet valves for hydraulic turbines and large diameter pumped energy storage ball valves from Dongfang Electric Corporation ("Dongfang Electric"), the largest manufacturer of power generating equipment and contractor for power station projects in the world.
These valves will be produced by the Company's subsidiaries China Valve Technology (Changsha) Valve Co., Ltd. and Zhengzhou Zhengdie Valve Co, Ltd.
As announced in February 2010, China Valves signed a strategic cooperative framework agreement to establish a joint research and development center for the development of high-end valves that Dongfang Electric currently imports. It is anticipated that in the next 5 to 10 years, the dramatic growth in the number and scale of hydropower and nuclear plants will result in approximately $10 billion demand for these advanced valves.
"We believe producing our current inlet valves for hydraulic turbines in pumped storage units and large diameter pumped energy storage ball valves domestically will benefit our company as well as our country," said Mr. Wang Ji, Chairman of Dongfang Electric. "As such, we highly value our cooperation with China Valves."
"We are pleased with our cooperation with Dongfang Electric thus far and look forward to receiving more contracts in the future," said Mr. Jianbao Wang, the Company's Chief Executive Officer. "The firm cooperation with a market leader like Dongfang Electric will provide us with more opportunities to access the rapidly developing hydropower market across the globe."
Mr. Siping Fang, Chairman of China Valves concluded, "The world is promoting the development of new energy sources. The Chinese government is also actively promoting in particular the development of hydropower, nuclear power, solar power, and tidal power projects to promote sustainable economic development. With our high-technology valves, we will use the opportunity to advance into the large-scale hydropower and nuclear power market."
About Dongfang Electric Corporation
Dongfang Electric Corporation (1072.HK; 600875.SS) is a state-owned enterprise located in Chengdu, Sichuan Province. Established in 1984, it is engaged in manufacture and sale of equipment for large hydropower stations, thermal power stations and nuclear power stations, as well as contracting power station projects, including design, manufacture, supply, technical service of the generating equipment, and turnkey projects for power stations. It accounts for more than 30% of the domestic main engine market of large thermal power stations, and up to 40% of the hydropower market. China's Central Party also considers it one of the most significant state-owned enterprises relating to China's national security and economic welfare.
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.
Ray Chen, VP of Investor Relations
Tel: +1 650-281-8375
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.