Asia Bio-Chem Announces Signing of Major Contract
3/29/2011 9:53 AM - Canada NewsWire
TORONTO, Mar 29, 2011 (Canada NewsWire via COMTEX News Network) --
Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem") is pleased to announce that it has signed an agreement with Zhaoqing Huanfa Bio Tech Ltd. ("Huanfa") for the supply of corn starch.
Based on the contract, Asia Bio-Chem will provide 204,000 tonnes of starch for the next 12 months to Huanfa. The sale price for the starch will be reset each month based on an industry rate specified in the contract. As part of the agreement, Huanfa will provide a cash deposit of RMB 25 million ($3.8 million) as security for future purchases.
"We are very pleased to announce this contract with Huanfa, who we have been doing business with for many years," said Zhiping Wang, President and CEO. "Our upgrades at our Changtu facility have played an important role in winning this contract, which will form an important part of Huanfa's supply of sweeteners to major international beverage, food and chemical companies."
About Asia Bio-Chem Group Corp. Asia Bio-Chem Group, through its wholly-owned subsidiaries in the People's Republic of China ("PRC"), is in the business of processing corn. From its plants in Liaoning and Heilongjiang Province, the Company has a total processing capacity of 900,000 tonnes of corn per year, which are processed into cornstarch, corn germ, gluten, and fiber for sale into the domestic Chinese market.
About Zhaoqing Huanfa Bio Tech Ltd. Zhaoqing Huanfa Bio Tech is a privately held sweetener manufacturer based in Guangdong province, China. Huanfa operates three manufacturing facilities across Southern China and is one of the largest producers of corn-based sweeteners in China. Huanfa produces a variety of sweetener products including fructose, sorbitol, glucose and maltose.
This news release contains certain statements that may be deemed "forward looking statements". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects,", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward looking statements, except as required by law, in the event that management's beliefs, estimates or opinions, or other factors, should change.
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SOURCE: Asia Bio-Chem Group Corp.