Jun 16 2010
China GengSheng Minerals, Inc. (NYSE Amex: CHGS), a leading China-based high-tech industrial materials manufacturer producing heat resistant, energy efficient materials for a variety of industrial applications, today announced that it has completed its technological improvements and commenced production on its upgraded fracture proppant manufacturing line.
With this build-out completed, GengSheng's proppant manufacturing lines now incorporate "revolving kiln" technology, which is designed to conserve energy and reduce production time. With these enhancements, GengSheng expects to realize cost reductions of up to 10% annually, as well as produce a broader range of proppant products for the oil and gas exploration industry.
"Upgrading our production line technology improves our overall efficiency and stabilizes our production capabilities," said Mr. Shunqing Zhang, GengSheng's Chairman and Chief Executive Officer. "Now that we are running both of our proppant production lines utilizing this cutting-edge technology, we expect to reduce our manufacturing costs by approximately $1 million annually. Implementing new, innovative solutions also advances our technological leadership and increases the value GengSheng provides for our customers. Demand for our proppants continues to grow and we can now service a greater portion of the market with our industry leading products."
On April 27, 2010, the Company completed its construction of a new "Phase II" fracture proppant production line. The launch of this new line effectively doubled GengSheng's manufacturing capacity for fracture proppants from 33,000 tons to 66,000 tons per year. The phase II production line also incorporates revolving kiln technology for improved efficiency, capacity and the ability to manufacture proppants that can withstand varying underground pressure as it relates to the oil well industry.