CHCL news
CHINA CONTINENTAL ANTICIPATES US$300 MILLION IN ANNUAL REVENUES FROM DAIRY PROJECT IN PAKISTAN COMMISSIONED FEASIBILITY STUDY PROVIDES Positive Results
HONG KONG, Feb 2, 2000 /PRNewswire via COMTEX/ -- China Continental,
Inc. (OTC Bulletin Board: CHCL) announces positive results of the
feasibility study on its dairy project in Pakistan. China Continental
and Stock Links Investment Management Limited of Pakistan, CHCL's
Financial Advisor in connection with the completion of the Master Plan
for the project, jointly carried out the feasibility study. The study
covered the dairy industry, sourcing of raw materials and technologies,
and the investment analysis of the projects.
This study identified Pakistan as the seventh largest producer of milk
in the world producing about 20 billion liters of raw milk annually.
The market has a significant demand of 3.5 million tons of dairy
products with an estimated market value of US$7 billion annually. It
determined that China Continental could build or purchase dairy farm
and processing plants to supply annual production of about 100,000 tons
of superior quality dairy products in Pakistan. The annual production
of the dairy products could meet 2.9% and 3.3% of total consumption of
milk and cheese respectively for the 138 million population in
Pakistan.
"We intend to supply the latest dairy industry technology to Pakistan
and be well-positioned to tap into, what we believe to be, a huge
lucrative industry. We believe that as the first foreign company to
enter this industry in a significant capacity, with the support of the
Pakistan Government, China Continental will be able to gain a large
market share," said Mr. Harry H.H. Ho, Chairman of China Continental
Inc.
Some of the dairy products that are anticipated to be produced include
high value-added products such as powdered milk, flavored milk, cheese,
butter, ice cream, dairy sweets, yogurt, etc. In addition, the Company
will consider involving renowned international dairy experts to
research and develop high quality dairy products for the Pakistan
market. To open up export opportunities, China Continental is also
looking into production of milk proteins through casein, caseinates and
other dietary proteins.
To develop a leading position in the dairy industry in Pakistan, the
study showed a preference in acquiring existing processing plants in
order to gain operational efficiency as well as set up its own highly
productive dairy farm to derive precise quality and quantity of raw
milk. The initial start-up phase for the dairy project is projected to
last for one year, which includes the upgrading of machines and
building a more efficient production and distribution system.
The feasibility study also pointed out that with the implementation of
the dairy projects in Pakistan, China Continental is positioned to lead
a consortium to develop supporting projects in the future. This would
evolve into the development of infrastructure projects to support the
packaging and distribution activities.
The feasibility study indicated that the total investment, for the
dairy projects and the development of supporting projects in Pakistan,
is estimated to be about US$1 billion. Assuming a smooth implementation
of the plan, the study indicated that China Continental could derive
revenue of approximately US$300 million annually, once in full
operation.
About China Continental Inc. China Continental Inc., traded on the
Nasdaq market since 1995, is a holding company with over 10 years of
experience in developing turnkey businesses. Core activities include
supplying plastic manufacturing technology on a turnkey basis, high
technology manufacturing techniques in primary industries and in
developing and providing technologies in agricultural genetics and
farming.
To date, China Continental Inc. has completed over 70 turnkey projects,
varying in size for different industrial processing sectors in China.
The manufacturing arm of China Continental Inc., Asia Continental
Limited, is engaged in applying state-of-the-art technology to
manufacturing and distribution of chemical fiber related products and
steel drums in China. In October 1999, Asia Continental Limited
announced its intention to list on the Stock Exchange of Singapore. The
Company's agricultural genetics and farming activities are centralized
in the Inner Mongolia Province of China, covering an area of 406 square
kilometers to commercialize its genetic techniques in breeding as well
as propagating superior livestock and products in its own Research and
Development Institute.
Safe Harbor Statement Except for the historical statements made herein,
the statements made in this release are forward-looking statements,
including, "We intend to supply the latest dairy industry technology to
Pakistan and be well-positioned to tap into, what we believe to be, a
huge lucrative industry," "total investment of $1 billion," and "$300
million in revenue." Factors that could cause actual results to differ
materially from those projected in forward-looking statements include
the Company's ability to capitalize on diversification opportunities,
financing, and the size and growth of the dairy markets in Pakistan.
The risks include organizing and managing the consortium, raising the
necessary capital, receiving government and legal approvals, general
business conditions, political and other business risks. Although the
Company believes that the forward-looking statements contained herein
are reasonable, it can give no assurance that the Company's
expectations are correct. All forward-looking statements are expressly
qualified in their entirety by this Cautionary Statement and the risks
and other factors detailed in the Company's reports filed with the
Securities and Exchange Commission.
SOURCE China Continental, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Harvey A. Goralnick of FOCUS Partners LLC, investors,
212-752-9445, or chcl@focuspartners.com, for China Continental
(CHCL)
GEOGRAPHY: China
Pakistan
INDUSTRY CODE: CPR
AGR
SUBJECT CODE: OTC |
