Hanfeng to expand Heilongjiang to 450,000 tonnes per annum


    TSX Symbol: HF

    TORONTO, April 17 /CNW/ - Hanfeng Evergreen Inc. ("Hanfeng" or the
"Company"), a leading provider of slow and controlled release fertilizers in
China, announced today that it will expand production capacity at its
Heilongjiang facility by an additional 100,000 tonnes per annum with the
construction of a NPK (nitrogen, phosphate, potash) compound fertilizer
coating plant, which will utilize two patented technologies developed by
Hanfeng. The Company will acquire raw land adjacent to their existing site to
accommodate the construction of the new production plant, additional
warehouses and a rail spur to move raw materials and finished goods to the
main railway line. Construction is expected to begin in May of 2007 with the
first phase of 50,000 tonnes/annum to be commissioned at the beginning of
October 2007 and the second phase at the beginning of February 2008. When the
new plant is completed, the Heilongjiang facility will have 450,000 tonnes of
annual production capacity, including 150,000 tonnes of coating and blending
    The new NPK compound fertilizer coating plant will utilize Hanfeng's
patented resin coated technology to produce Polymer Coated Compound Fertilizer
("PCF") and a sulfur coating technology to produce Sulfur Coated Compound
Fertilizer ("SCF"), both of which were developed by engineers at Hanfeng's R&D
center in Shanghai. The technology can precisely control the nutrient
releasing period for up to 12 months, and has the added benefit enabling
Hanfeng to apply the coatings on NPK granules, instead of a single nutrient
like urea. These advantages, combined with the small size of the grains
(0.5 to 3.5 mm diameter) and the ability to customize the nutrient levels,
makes the PCF and SCF products highly competitive in the international urban
greening markets.
    "Hanfeng continues to capitalize on its ability to successfully develop
and commercialize advanced fertilizer technologies," stated Mr. Xinduo Yu,
President & CEO of Hanfeng Evergreen Inc. "These low cost, coated NPK products
will further increase our brand recognition and competitiveness in the global
    The existing Heilongjiang tower will supply the NPK granules for the
higher-margin PCF and SCF products at an undiscounted rate that will allow the
existing facility to maintain its current operating margins. The estimated
total budget of this project, including additional land costs, is
approximately $85.2 million RMB (or CAD$12.5 million) and will be funded from
proceeds generated by the $80 million in share subscriptions by Agrium Inc.
and PetroChina Petrochemical Company announced on April 2, 2007. Once
completed, the 100,000 tonne expansion will increase Hanfeng's total annual
productive capacity from all facilities to 700,000 tonnes, including
400,000 tonnes of NPK capacity, 100,000 tonnes of sulphur coated urea
capacity, 100,000 tonnes of NPK coating capacity, and 100,000 tonnes of
blending capacity.

    About Hanfeng Evergreen Inc.

    Hanfeng is a leading provider of slow and controlled release fertilizers
to blenders, the agriculture market and the urban greening market. Hanfeng was
the first to introduce the concept of slow and controlled release fertilizers
into China's agriculture market with its establishment of the first commercial
scale slow-release fertilizer production in China. All production facilities
are located in prime agricultural regions of China. The Company is
headquartered in Toronto, Ontario and its shares trade on the Toronto Stock

    This press release contains forward-looking statements based on current
expectations. These forward-looking statements entail various risks and
uncertainties that could cause actual results to differ materially from those
reflected in these forward-looking statements. Risks and uncertainties about
Hanfeng's business are more fully discussed in the Company's disclosure
materials, including its annual information form and MD&A, filed with the
securities regulatory authorities in Canada, available at www.sedar.com

    %SEDAR: 00019491E

For further information:

For further information: Madeline Haiying Yu, CA, Hanfeng Evergreen
Inc., Chief Financial Officer, Email: info@hanfengevergreen.com, Phone: (416)
368-8588; Kevin O'Connor, Genoa Management Ltd., Investor Relations, Email:
koconnor@genoa.ca, Phone: (416) 962-3300

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