Jan 7 2010
China Infrastructure Construction Corporation (OTC Bulletin Board: CHNC), one of the major U.S.- listed providers of ready-mix concrete in Beijing, today announced that it has entered into a 10-year strategic agreement with one of its major clients, China Railway Construction Group Co., Ltd. ("CRCG"). Under the Agreement, the two parties will join to produce and sell concrete in north central China's Xi'an region, and CHNC has already built and will open a new manufacturing facility there.
As of press time, a CHNC branch mixing station with an annual production capacity of 3,600,000 m3 has been set up in the city of Xi'an. The new station will be put into production in early February 2010 to supply concrete for a series of construction projects in the Xi'an region. At CHNC's historical capacity utilization rates, estimated annual sales revenue from the new Xi'an facility may reach up to $40 million.
Mr. Yang Rong, Chairman and Chief Executive Officer of CHNC said, "We have always been successful in maintaining good relationships with our major clients. The achievement of this agreement is a validation of China Railway Construction Group's high recognition of CHNC product quality and our leading after-sales service levels. As China Railway Construction Group establishes mass-market penetration in the Xi'an region, this agreement can in turn accelerate the expansion of the CHNC business throughout northwest China."
Source: http://www.crccg.com/