Jun 8, 2010 - China GengSheng Minerals, Inc., a leading China-based high-tech industrial materials manufacturer producing heat resistant, energy efficient materials for a variety of industrial applications, today announced that it has secured a contract with China National Petroleum Corporation (CNPC), with total value approximately $4.6 million, for its fracture proppant products. Product shipments under this contact and revenue recognition are expected to commence during the second quarter of 2010 and continue through the forthcoming twelve months.
"This contract marks an important milestone to establishing long lasting business relationships with State-Owned Enterprises in the oil and gas sector," said Mr. Shunqing Zhang, GengSheng's Chairman and Chief Executive Officer. "As we work to enhance our leadership position in this market, growing our fracture proppant business advances our strategy to supplement our revenue stream from our core refractories product line and improve our margin profile through the sale of our higher margin proppant products. We expect demand for our fracture proppant products will continue to grow during the second half of the fiscal year, and we are working to increase our manufacturing capacity and efficiency to address increased market demand."
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a globally reputed contractor in engineering construction. With a presence in almost 70 countries, CNPC is seeking an even greater international role. CNPC provides energy in a profitable manner, and always attach great importance to our social and environmental responsibilities.
"This contract marks an important milestone to establishing long lasting business relationships with State-Owned Enterprises in the oil and gas sector," said Mr. Shunqing Zhang, GengSheng's Chairman and Chief Executive Officer. "As we work to enhance our leadership position in this market, growing our fracture proppant business advances our strategy to supplement our revenue stream from our core refractories product line and improve our margin profile through the sale of our higher margin proppant products. We expect demand for our fracture proppant products will continue to grow during the second half of the fiscal year, and we are working to increase our manufacturing capacity and efficiency to address increased market demand."
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a globally reputed contractor in engineering construction. With a presence in almost 70 countries, CNPC is seeking an even greater international role. CNPC provides energy in a profitable manner, and always attach great importance to our social and environmental responsibilities.
