Jul 1 2010
China Green Material Technologies, Inc. (OTC Bulletin Board: CAGM, or the "Company"), a Chinese leader in developing and manufacturing starch-based biodegradable containers, tableware and packaging materials, today announced that its new production capacity will come on line in the second half of 2010.
The Company's new manufacturing facility will raise annual production capacity by approximately 45%. As part of the expansion, the Company plans to add new equipment which will enable CAGM to increase its manufacturing efficiency and meet increasing market demand for its biodegradable consumer products. The Company expects total revenues in 2010 to increase between 25% and 30% from the $13.4 million reported in 2009. The expanded capacity will support the Company's anticipated growth through 2011.
"We are pleased to report progress on our expansion plans, which will enable us to meet existing customer demand and facilitate growth for this year and next," said Mr. Zhonghao Su, Chief Executive Officer. "The global market demand for environmentally-friendly, bio-degradable products is among the fasting growing in the consumer products segment. We are ideally positioned in China, where our Company has a strong position in a highly fragmented market, maintains a low cost advantage and offers superior product performance. To capitalize on the rapid domestic growth, we are focused on increasing our market share in the airline and railway sectors, developing additional clients in the fast food industry and expanding our network of agents and distributors. To pursue further growth in international markets, we are working with distributors to expand our reach to the U.S., France, the U.K., Israel, Korea and Japan. Importantly, we have a focused sales and marketing strategy in place to execute our plans and expect to achieve revenue growth of 25%-30% in 2010."