China GengSheng Minerals and a strategic advisory, marketing and technology firm based in the United States have inked a five-year collaboration deal to market and supply China GengSheng Minerals’ fracture proppant products across North America.
As per the deal, both companies will launch a jointly owned brand of the fracture proppant products, which will be distributed to the oil and gas producers in the North American region. China GengSheng Minerals will deliver 4,000 metric tons of fracture proppant products every month starting from July 2011.
The volume will increase on a bi-monthly basis and is anticipated to achieve at least 8,000 metric tons a month by October 2011. The deal also gives an option to the US-based company to buy more quantities of fracture proppant products than those specified in the deal, based on availability.
The Chairman and Chief Executive Officer for China GengSheng Minerals, Shunqing Zhang commented that the company is impressed with its US partner’s capabilities as well as its expertise and foothold in the North American oil & gas and fracture proppant markets.
Zhang further said that the company has increased its annual production capacity of fracture proppant to 90,000 metric tons in order to meet the global demand. The company has started the construction of its second manufacturing plant, which will produce an additional 60,000 metric tons of proppant products annually, starting from the third quarter of 2011.