China Carbon Graphite Group Begins to Construct New Plants

Oct. 5 - China Carbon Graphite Group, Inc., the largest wholesale supplier of fine grain and high purity graphite in China and one of the nation's top overall producers of carbon and graphite products, today announced it has started construction on a new forming and baking plant with an initial budgeted investment outlay of approximately $13.5 million; this expansion will further increase the company's production capacity to meet the growing demand for high purity products in the global market. Construction for both plants is planned to be completed by the end of June 2011.
The budget for the forming plant and the baking plant is $6 million and $7.5 million, respectively. The new forming plant will specialize in manufacturing large size ultra high graphite electrode, high purity graphite and fine gain graphite. In addition, the new baking plant will have 36 furnaces, totaling 160 meters in length, and will include 30,000 tons capacity, making it the largest baking plant in China's graphite industry.
"We believe we have sufficient cash on hand and from operations, together with our bank facility, to expand our factory capacity and continue to support our business," said Donghai Yu, the Chief Executive Officer of China Carbon. "As of today, we already have 30,000 tons production capacity; which can currently be broken down into the following segments; 5,000 tons of graphite electrodes, 10,000 tons of fine grain graphite, and 15,000 tons of high purity graphite. As soon as the two projects are completed, the total production capacity of the company would reach up to 60,000 tons. These two new plants will empower us to achieve our goal of ramping up our operations to meet increasing demand for our high quality Carbon products in the global markets".