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TSX Venture: ABC
TORONTO, Jan. 15 /CNW/ - Asia Bio-Chem Group Corp. (TSXV: ABC) ("Asia Bio-Chem" or the "Company") announced today that its newly completed Daqing corn- processing plant has reached designated production capacity for 48 hours of continuous operation in the first week of January 2010.
"Production processes and all machinery within the plant are running smoothly and the plant is capable of full continuous production," said Zhiping Wang, President and CEO. "Once material handling logistics are fully in place, the plant will be able to operate continuously at full capacity."
These logistics have, until now, been hindered by a shortage of rail cars, due to increased demand for coal as a result of abnormally cold weather conditions experienced in the region. This situation is compounded by seasonally high demand for transportation leading up to the Chinese New Year. The temporary shortage in rail cars has limited coal shipments into the plant and product shipments out of the plant.
Asia Bio-Chem is currently in discussions with relevant rail bureaus and expects to resolve the issue shortly. The Company has also:
- entered into a preliminary agreement with the local state-owned coal
company for ongoing coal supply and has received an initial shipment
via truck., and
- undertaken discussions with local trucking companies to secure
additional shipping services.
Management believes that the rail car logistics will be in place within the next few weeks and that the Daqing plant will achieve an average capacity of between 65% and 75% during the first quarter of 2010.
In addition, the Company is expanding its loading system at the Daqing plant to accommodate bi-modal container cars designed to improve efficiencies and reduce shipping costs. These improvements are in the application and approval stage with the Rail Road Ministry and expected to be completed in the second quarter.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the Peoples 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 tones of corn per year which is processed into cornstarch, corn germ, gluten and fiber for sale into the domestic Chinese market.
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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
SOURCE Asia Bio-Chem Group Corp.
For further information: For further information: Robert Wilson, (416) 603-7500