CHCL!! WHEN WILL THE NEWS STOP? China Continental's Subsidiary, Asia Continental Limited, To Add New Production Line to Boost Output
ACL's Listing Plan Makes Steady Progress
HONG KONG, Feb. 11 /PRNewswire/ -- China Continental, Inc. (OTC Bulletin Board: CHCL - news) subsidiary, Asia Continental Limited (ACL), announced today that one of its manufacturing plants, Weifang Great Dragon Company Limited, is placing an order for an additional production line to increase its capacity due to the rising demand of its chemical fiber-related products.
Meanwhile, the proposed listing plan of Asia Continental Limited on the Singapore Exchange (SGX) continues to progress. The Company is working closely with its lead manager, United Overseas Bank Group (UOB Group), to prepare for an initial public offering of its shares in the second quarter.
At present, Weifang Great Dragon has a maximum production capacity of 8,000 metric tons. It produces chemical fiber-related products such as tire cord fabrics, canvasses and fishing net fibers. These are distributed both in China and to countries such as Bangladesh, Pakistan and Indonesia. It is now aggressively expanding its market share in Asia and its products are gaining popularity for their superior quality and competitive pricing in China as well as in international markets.
As such, Weifang Great Dragon will be installing the additional production line to raise its production capacity of chemical fiber-related products from the current 8,000 metric tons to 12,000 metric tons.
''Our Weifang plant has started to secure new and repeat orders from companies in Asia. As it has always focused on product quality, and adopted a competitive pricing strategy, it will have a competitive edge over its industry rivals. We intend to install more production lines in the future as the demand increases and we hope to capture a greater share of the market,'' said Mr. Harry H.H. Ho, Chairman of China Continental, Inc.
Prospects are particularly bright in the area of fishing net fiber production. Presently, Weifang Great Dragon has signed a counter-trade agreement with Bangladesh and is negotiating a similar agreement with Pakistan and Indonesia. Under this arrangement, Weifang Great Dragon will trade its fishing net fibers for frozen seafood and import the seafood into China.
Over the years, China's import of seafood has increased significantly due to the serious depletion of marine resources in the coastal areas and its improved standard of living. China has a huge consumer base for seafood, importing two million tons worth approximately US$2 billion in 1998. By 2002, China is projected to import US$7 billion worth of seafood.
With the counter-trade agreement in place, Weifang can expand the seafood market for its overseas clients which in turn will generate a higher demand for fishing net fibers. Eventually, by 2002, Weifang aims to supply US$22 million worth of quality fishing net fibers annually to China and to the international markets.
''The size of the fishing net fiber market is growing rapidly and we want to capitalize on this opportunity. We expect this product to become the main source of revenue for Weifang Great Dragon in the next three years,'' Mr. Harry Ho said.
About China Continental, Inc.
China Continental, Inc., traded on the OTC Bulletin Board market since 1995, is a holding company with over ten years of experience in developing turnkey businesses. Core activities include supplying manufacturing technology on a turnkey basis, high technology manufacturing techniques in primary industries, and developing and providing technologies in agricultural genetics and farming. 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, ''proposed listing plan'', ''prepare for an initial public offering'', ''aggressively expanding its market share'', ''intend to install'', ''is negotiating a similar agreement with'', ''is projected to import'', ''will generate a higher demand'' and ''aims to supply''. Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, the Company's ability to capitalize on diversification opportunities, government approvals, financing, general business conditions, managing growth, and 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.
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