Today, high tech industrial materials products company, China Gengsheng Minerals, Inc. announced that it has renewed a full-service refractory contract and regenerative bricks contract with Shandong Iron and Steel Group, Rizhao Subsidiary. The full-service contract will begin on December 1st, 2009 and last to November 10th, 2010; the regenerative bricks contract lasts for 18 months. The combined value of the two contracts is estimated at approximately $9.0 million. Payments will be made on a monthly basis in accordance with the production schedules.
Gengsheng, with products capable of withstanding high temperatures, saving energy and boosting productivity in steel and oil industries, provides “full services” to China’s steel mills in the form of refractory product installation, testing, maintenance, repair and replacement. The company recently renewed three other full-service, refractory contracts for another year. The combined total value of the three renewal contracts is estimated to be approximately $7.3 million.
Mr. Shunging Zhang, Chairman and CEO of Gengsheng, commented, “I am encouraged by the two contracts with Shandong Iron and Steel Group, Rizhao Subsidiary. As our biggest customer and strategic partner, Shandong Iron and Steel Group, Rizhao Subsidiary has generated solid revenue growth and stable revenue streams for us. Meanwhile, the high value-added products such as the full- service programs and regenerative bricks typically enjoy higher gross margins.”