WEIFANG, Shandong, China, Aug. 6
/PRNewswire-Asia-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC
Bulletin Board: SGTI) announced today that on August 3, 2010, Weifang Shengtai Pharmaceutical
Co., Ltd ("Weifang Shengtai"), its operating subsidiary in
China, entered into an agreement
with Jiangsu Zongheng Drying Equipment Co., Ltd. ("Jiangsu
Zongheng") to purchase a 30T/MVR Glucose Evaporator ("the MVR
Evaporator") that will help reduce total energy consumption and
enhance production efficiency at Weifang Shengtai.
The MVR Evaporator consists of an automatic control system and
other highly efficient parts and structures. While it consumes more
electricity, it will consume less steam and in net, will reduce
total costs in the process of evaporation. According to the
Exchange rate on August 3, it will
cost Weifang Shengtai 1.7 million USD
to purchase and install the MVR Evaporator. The total cost of
1.70 USD includes the contract
purchase prices of 1.55 million USD
and the purchase price of 0.15 million
USD of the accessories. Recognizing the MVR Evaporator as a
major energy-saving project, the National Development and Reform
Commission of the Chinese Central Government will award Weifang
Shengtai 0.53 million USD in a
one-time payment, as a result, the total costs of the MVR
Evaporator project will reduce to 1.17
million USD, which in turn will be fully recovered by the
operational cost saving within a year after the MVR evaporator is
fully operational in production.
The MVR Evaporator is one of the projects that Weifang Shengtai
is committed to in removing bottlenecks identified in production
process, exploring of potential production capacity and cost
reduction. Shengtai Pharmaceutical, Inc. will continue to
communicate to investors the development of Weifang Shengtai's
commitment to exploring of potential production capacity, cost
reduction and enhancement of production efficiency. With smooth
operation at Weifang Shengtai and the rebound of the selling prices
of Weifang Shengtai's products after the financial crisis, Shengtai
Pharmaceutical, Inc. is confident of its plans that will deliver
returns to investors.
About Shengtai Pharmaceutical, Inc.
Shengtai Pharmaceutical, Inc. through its wholly owned
subsidiary, Shengtai Holding, Inc. (SHI), and the Chinese operating
company of Weifang Shengtai Pharmaceutical Co., Ltd., is a
manufacturer and distributor in China of glucose and starch products as
pharmaceutical raw materials, other starch products and other
glucose products such as corn meals, food and beverage glucose and
dextrin. For more information about Shengtai Pharmaceutical, Inc.,
please visit http://www.shengtaipharmaceutical.com/ .
Forward Looking Statements
Certain statements in this press release and oral statements
made by the Company constitute forward-looking statements
concerning the Company's business and products. These statements
include, without limitation, statements regarding our ability to
prepare the Company for growth, the Company's planned capacity
expansion and predictions and guidance relating to the Company's
future financial performance. We have based these forward- looking
statements largely on our current expectations and projections
about future events and financial trends that we believe may affect
our financial condition, results of operations, business strategy
and financial needs, but they involve risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements, which may include, but are not limited
to, such factors as unanticipated changes in product demand
especially in the pharmaceutical industry, pricing and demand
trends for the Company's products, changes to government
regulations, risk associated with operation of the Company's new
facilities, risk associated with large- scale implementation of the
Company's business plan, the ability to attract new customers,
ability to increase its product's applications, cost of raw
materials, downturns in the Chinese economy, and other information
detailed from time to time in the Company's filings and future
filings with the United States Securities and Exchange Commission.
Investors are urged to consider these factors carefully in
evaluating the forward-looking statements herein and are cautioned
not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by this cautionary statement.
The forward-looking statements made herein speak only as of the
date of this press release and the Company undertakes no duty to
update any forward-looking statement to conform the statement to
actual results or changes in the Company's expectations.
For more information, please contact:
Shengtai Pharmaceutical, Inc.
Tel: +86-536-629-5802
Email: shengtaigsz@hotmail.com
Investor Relations Contact
DME Capital, LLC
Mr. David M. Elias
Tel: +1-516-967-0205
Email: dave@dmecapital.com
SOURCE Shengtai Pharmaceutical, Inc.
Copyright g. 6 PR Newswire