China Advanced Construction Materials Group Awarded Two New Contracts for XiangGui Railway Totaling $3.9 Million
02 September 2009 - 11:00PM
PR Newswire (US)
NEW YORK and BEIJING, Sept. 2 /PRNewswire-FirstCall/ -- China
Advanced Construction Materials Group, Inc. ("China ACM")
(OTC:CADC) (BULLETIN BOARD: CADC) , a leading provider of ready-mix
concrete and related services in China, today announced that it has
been awarded two contracts totaling $3.9 million to provide
concrete manufacturing services for two sections of the XiangGui
railway construction project. Upon completion, the XiangGui railway
will run from Hengyang in Hunan to Pingxiang in the Guangxi
Autonomous Region and will cover approximately 185 kilometers. This
portion of the project is scheduled for completion in 2012. China
ACM will provide the concrete for both contracts using its portable
ready-mix concrete plants. Under the agreements, the general
contractor will supply the raw materials and China ACM will produce
the ready-mix concrete. Mr. Xianfu Han, Chairman and Chief
Executive Officer, stated, "Our long-standing relationships with
top contractors and construction companies in China have resulted
from our ability to consistently fulfill their needs and exceed
their expectations. This, in turn, has enabled us to secure
important projects and repeat business. The amount of ready-mix
concrete that we will provide for these two sections alone totals
approximately 400,000 cubic meters. Our superior pricing,
unsurpassed quality and proven track record were all factors in our
selection. We have now been awarded eleven of these railway
projects, which we expect will generate over $30 million in revenue
for the next two years, with over 60% gross margins. We continue to
bid on similar contracts and our sales pipeline is stronger than
ever." About China ACM China ACM, founded in 2002 and based in
Beijing, China, is a leading producer of advanced construction
materials for large scale commercial, residential, and
infrastructure developments. The company is primarily focused on
producing and supplying a wide range of advanced ready-mix concrete
materials for highly technical, large scale, and environmental
construction projects. The company also aims to develop and produce
new and innovative environmentally conscious construction
materials. China ACM provides materials and services through its
seven ready-mix concrete plant network covering Beijing
metropolitan area. China ACM owns one plant, leases two plants and
has technical services and preferred procurement agreements with
four other independently-owned plants. China ACM is ISO 9001
(product quality), ISO 14001 (environmental safety), and ISO 18001
(employment environment safety) certified. Additional information
about the company is available at http://www.china-acm.com/. This
press release contains "forward-looking statements" within the
meaning of the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve known and
unknown risks, uncertainties and other factors that could cause the
actual results of the Company to differ materially from the results
expressed or implied by such statements, including changes from
anticipated levels of sales, future national or regional economic
and competitive and regulatory conditions, changes in relationships
with customers, access to capital, difficulties in developing and
marketing new products, marketing existing products, customer
acceptance of existing and new products, and other factors.
Additional Information regarding risks can be found in the
Company's Annual Report on Form 10K and in the Company's recent
report on Form 8K filed with the SEC. Accordingly, although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. The
Company has no obligation to update the forward-looking information
contained in this press release. Contact: Crescendo Communications,
LLC David Waldman or Klea Theoharis Tel: (212) 671-1020 Email: Web:
http://www.china-acm.com/ DATASOURCE: China Advanced Construction
Materials Group, Inc. CONTACT: David Waldman, or Klea Theoharis,
both of Crescendo Communications, LLC, +1-212-671-1020, for China
Advanced Construction Materials Group Web Site:
http://www.china-acm.com/
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