NEW YORK, March 23, 2011 (GLOBE NEWSWIRE) -- China Carbon Graphite Group, Inc. (OTCBB:CHGI) ("China Carbon" or the "Company"), the largest wholesale supplier of fine-grain and high-purity graphite in China and one of the nation's top manufacturers of carbon and graphite products, today announced that its management believes that the ensuing problems with Japan's nuclear facilities are not expected to diminish the Company's growth prospects.
Despite the recent earthquake in Japan and subsequent problems at Japanese nuclear facilities, reports from the Chinese Government continue to reiterate that nuclear expansion in China will continue. According to the state-run Xinhua news agency, Chinese Vice Minister of Environmental Protection Zhang Lijun said: "China will not change its determination and plan for developing nuclear power." Currently, there are 13 nuclear power reactors in China and 25 more are under construction, with plans to start construction on more facilities soon. Each of China's 13 operating nuclear power reactors requires at least 10,000 tons of nuclear graphite every year.
In 2012, China Carbon intends to begin producing isostatic graphite, including solar, semiconductor or nuclear graphite. Management believes that China Carbon would likely have the support of the Chinese Government if the Company decides to produce nuclear graphite, which is used as reflectors within nuclear reactors. China is asking domestic enterprises to supply the nation's burgeoning nuclear industry; Chinese companies, like China Carbon, stand to benefit considerably. China is quickly becoming independent in regards to nuclear reactor design and construction and the nation plans to increase domestic manufacturing of nuclear plants and equipment. China hopes to be completely self-reliant in respect to the design and project management of their nuclear facilities as well. China Carbon's position as an established, large domestic supplier and the Company's continuing research development activities related to isostatic graphite puts China Carbon in an excellent position to potentially do well in the nuclear power industry in the future. In the event that the Chinese Government chooses in the near future to pursue solar power expansion instead of nuclear power as a result of the recent catastrophic events in Japan, China Carbon is confident that it will be capable of manufacturing solar graphite to meet alternative energy demands.
China Carbon CEO, Donghai Yu, stated: "China Carbon's market strategy is extremely flexible. Our technology is applicable to multiple industries, allowing us to consider market demand before making any decisions. Regardless of the future developments in China's nuclear industry, we anticipate that graphite will increasingly be in demand. Solar graphite is an isostatic graphite, which is a key component to manufacturing poly-si silicon, which is currently in short supply but in high demand in the solar industry. Many foreign poly-si silicon producers are arranging to shift their production plants to China. As demand increases for nuclear or isostatic graphite in particular, and graphite in general, China Carbon looks forward to becoming a prominent supplier of graphite."
During the course of 2010, China Carbon doubled annual production capacity from 15,000 tons to 30,000 tons, driving revenues higher during the nine months ended September 30, 2010. The Company intends to double annual production capacity again by June 2011 to 60,000 tons. China Carbon expects to utilize its new facility, which has an annual production capacity of 30,000 tons, primarily to produce its existing products, including graphite electrodes, fine grain graphite and high purity graphite, which are used in a variety of high-tech applications including aerospace, defense, automotive and clean tech end products.
In 2012, China Carbon plans to develop isostatic graphite—including nuclear graphite, solar graphite and semiconductor graphite—in a separate plant. The Company expects that $12 million dollars will be needed to purchase an isostatic molding machine and to construct the new facilities in order to produce isostatic graphite. The Company anticipates that cash generated by operations and provided by local Chinese banks should be sufficient to fund this expansion. The Company is currently operating at 100% capacity.
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong Carbon Co., Ltd., manufactures graphite and carbon based products in China. The company is the largest wholesale supplier of fine-grain and high-purity graphite in China and one of the nation's top overall producers of carbon and graphite products. Fine grain graphite is widely used in smelting for colored metals and rare earth metal smelting as well as the manufacture of molds. High purity graphite is used in metallurgy, mechanical industry, aviation, electronic, atomic energy, chemical industry, food industry and a variety of other fields. In September 2007, the Company was approved and designated by the Ministry of Science & Technology as a "National Hi-tech Enterprise," a distinction which the Company still holds. Of the more than 400 carbon graphite producers in China, China Carbon is the only non-state-owned company to receive this honor. For more information, please visit www.chinacarboninc.com.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. 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 the risk factors set forth in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q.