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China Gengsheng Minerals, Inc. Receives $2.9 Million in Short-Term Loan From Agricultural Bank of China

Post Time:Mar 26,2009Classify:Company NewsView:267

Loan Could Be Used to Launch Abrasives Production Line Later This Year
 
China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that Henan Gengsheng Refractories Co., Ltd., its wholly owned subsidiary, has signed a $2.9 million (RMB 20 million) short-term loan agreement with Agricultural Bank of China's Gongyi City branch in Henan Province ("ABC Gongyi").

"I am very pleased that ABC Gongyi granted us this loan based on our excellent credit," said Mr. Shunqing Zhang, Chairman and CEO of the Company. "The proceeds give us sufficient cushion in a difficult economic environment, with steel factories curtailing production. And because of the slowdown in the alternative energy space worldwide, we are delaying our launch of our 2,083- ton-capacity fine precision abrasive production line until later this year. Depending on the improvement in market condition, we will use this $2.9- million loan to start the production and shipment of the abrasives."

Gengsheng has built the new facilities and is now awaiting equipment purchase and installation to produce the fine precision abrasives from silicon carbide (SiC), which are ultra-fine, high-strength, grain-like pellets with uniform shape, and have applications in surface-polishing and slicing of precision instrument such as solar panels.

Source: China Gengsheng Minerals, Inc.Author: shangyi

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