Jun 23 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 introduced new monolithic refractory products and design technology for the development of slide-rail heating furnaces, a cost-effective, energy efficient alternative to traditional water cooling pipe-based technology.
China GengSheng estimates that slide-rail heating furnaces reduce energy consumption by approximately 10-15% compared with traditional furnace designs.
In conjunction with the launch of this new technology, China GengSheng has received refractory and design service orders valued approximately $440,000 from Tangshan Hongwei Steel Co., Ltd. ("Hongwei") for the upgrade and remodel of Hongwei's existing water pipe cooled heating furnaces. This project was commenced in the second quarter of 2010, and is expected to be concluded in the third quarter.
"Our partnership with Hongwei, as a materials supplier and design partner, supports our strong position in the refractories market and speaks for our expertise in industrial technology," said Mr. Shunqing Zhang, China GengSheng's Chairman and Chief Executive Officer, "We are proud to be the first provider of the new refractory products, as well as the technology and know-how required for the construction of the advanced heating furnaces. We believe that our partnership with Hongwei and the new furnace technology provide us with a significant opportunity to grow our refractories and design service business as additional steel manufacturers recognize the operational benefits and cost savings associated with slide-rail heating furnace technology. We remain committed to generating additional value for our customers and further advancing our market leadership through continued technological innovation."