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China Runji Cement Inc. Begins
Construction of a New Waste Heat Generator
Wednesday May 21, 2008, 10:00 pm
China Runji Cement Inc. (OTCBB:CRJI) ("Runji" or "the Company"), a
leading producer and distributor of cement in Anhui Province, PRC,
today announced that it broke ground on the construction of a waste
heat-fueled electric generator on May 16, 2008.
The construction of the new generator at Runji's Anhui province
production site is an important step towards meeting the Company's
strategic goals of lowering electric costs, one of the most
expensive elements in cement production, and reducing reliance on
outside power sources. Currently, electricity represents 23% of the
Company's total production costs, which is expected be reduced to
approximately 15% after the completion of the project by January
2009. The generator system will use waste heat produced during the
production of cement to power a turbine, generating electricity.
Total capital expenditures for the project will be $10 million; it
is expected to save about $2.30 per ton of finalized cement products
or roughly $4.6 million annually after the Company's second
production line is completed. The generator will leave Runji less
vulnerable to failures in the Chinese power grid, like an outage
that lasted several days in February which forced the Company to
temporarily suspend production.
"After months of planning, we are very excited to commence the
construction of our waste heat electric generator," said Mr. Shouren
Zhao, the Chairman and CEO of the Company. "This project will
greatly improve Runji's profitability and margin, reduce production
costs, increase the reliability of our power supply, and help us
meet government energy conservation standards. Overall, we believe
the generator will give us a unique competitive advantage and help
us raise our profile among regional players in the cement industry."
About China Runji Cement, Inc.
China Runji Cement ("Runji or the Company") is one of the leading
players in cement production and distribution in Anhui Province,
China. The Company's certified manufacturing facilities contain
cutting-edge technology and advanced equipment that are capable of
producing over one million tons of cement annually. Runji's main
products are PII52.5, PO42.5, PO32.5 and PC32.5 cement that sold
under the "Runji" brand. The Company's solid client base and
customer-orientated services have allowed Runji to dominate the
local cement market. For more information on the Company and its
products, please visit http://www.chinarunji.com/index.asp.
Safe Harbor Statement
This press release contains certain statements that may include
'forward looking statements' as defined in the Private Securities
Litigation Reform Act of 1995 . These forward looking statements are
often identified by the use of forward-looking terminology such as
"believes, expects, anticipate, optimistic, intend, will" 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 those
discussed in the Company's periodic reports that are filed with and
available from the Securities and Exchange Commission. 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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