Hanwei Energy Services Corp. Provides International Sales Update



    TSX.V: HE

    VANCOUVER, Aug. 2 /CNW/ - Hanwei Energy Services Corp. (TSX-V: HE) (the
"Company" or "Hanwei") is pleased to announce that it has made significant
progress in achieving its strategic goal of expanding its sales
internationally. In 2006, Hanwei generated all of its $24.8 million in sales
in China from the sale of high pressure fibreglass reinforced plastic ("FRP")
pipes for the oil industry.
    Year to date, in addition to achieving the expected growth in sales and
sales orders in the China market, Hanwei has RMB 20 million ($2.8 million) in
confirmed sales orders from Kazakhstan for delivery in 2007 and an additional
RMB 24.8 million ($3.5 million) in expressions of interest for delivery in
2007 and 2008, for a total of RMB 44.8 million ($6.3 million) in confirmed
orders and expressions of interest from Kazakhstan.
    Over 80% of the sales orders and expressions of interest from Kazakhstan
were pursuant to the Exclusive Cooperation Agreement ("ECA"), dated January
2007, that Daqing Harvest Longwall High Pressure Pipe Co. Ltd. ("Harvest"),
Hanwei's 91.075% owned subsidiary (see Annual Information Form, filed on
SEDAR, under the "The Company" for disclosure regarding Hanwei's equity
interest in Harvest), signed with China Petroleum Technology and Development
Corporation ("CPTDC"), a wholly owned subsidiary of China National Petroleum
Corp. ("CNPC"), a state-owned entity and the parent company of (i) Daqing Oil
Management Bureau which owns Daqing Changyuan Investment Co. Ltd. (Harvest's
joint venture partner) and (ii) Petrochina Co., Ltd. a major Chinese oil and
gas company listed on the New York Stock Exchange (NYSE:   PTR). Under the ECA
Harvest and CPTDC will cooperate to develop markets for Harvest's FRP products
in Kazakhstan and other Commonwealth of Independent States (including:
Azerbaijan, Armenia, Belarus, Georgia, Kyrgyzstan, Moldova, Russia,
Tajikistan, Turkmenistan, Uzbekistan and Ukraine), and Indonesia, India, Saudi
Arabia, Oman, and Peru for an initial period of two years.
    The ECA with CPTDC has also facilitated progress in Russia and Indonesia,
where potential customers, including a number of major oil companies have
agreed to test the Hanwei's high pressure FRP oil pipe in 2007. Hanwei is also
targeting markets in the Middle East and India with CPTDC and on its own.
    "We are targeting oil producing regions where there is strong demand for
oil pipe that is currently being served primarily by steel pipe. Kazakhstan's
government has set a target to increase oil production from just over
1 million barrels a day in 2006 to over 3.5 million barrels a day within ten
years, and is looking for solutions to corrosion, which represents a great
opportunity for our oil transmission pipe from the well head," said Fulai
Lang, President and CEO of Hanwei, "CNPC is a major customer in China and has
validated the quality of our products since 2003, so its oil & gas services
subsidiary, CPTDC is an effective partner since they understand the benefits
of FRP pipe over steel, including longer life due to resistance to corrosion,
lower installation cost and better flow efficiencies. Our manufacturing cost
in China enables us to make healthy margins as an exporter to the targeted
regions, however we are considering the potential to establish production
facilities in regions where the demand is sufficient to support a
manufacturing facility and there is limited or no local manufacturers of high
pressure FRP oil pipe. Under these conditions, a local manufacturing facility
will reduce transportation costs, enhance local technical and relationship
support to our customers and establish competitive advantages."

    THE TSX VENTURE EXCHANGE NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF
THIS NEWS RELEASE. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR
THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION. THE
SECURITIES REFERRED TO IN THIS NEWS RELEASE WILL NOT AND HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AND MAY NOT BE
OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS.

    FORWARD LOOKING INFORMATION AND NON-GAAP MEASURES

    Certain information in this news release is forward-looking within the
meaning of certain securities laws, and is subject to important risks,
uncertainties and assumptions. This forward-looking information includes,
among other things, information with respect to management's estimates of
capital requirements, as well as information with respect to the Company's
beliefs, plans, expectations, anticipations, estimates and intentions. The
words "may", "could", "should", "would", "suspect", "outlook", "believe",
"anticipate", "estimate", "expect", "intend", "plan", "target" and similar
words and expressions are used to identify forward-looking information. The
forward-looking information in this news release describes the Company's
expectations as of the date of this news release.
    The results or events anticipated or predicted in such forward-looking
information may differ materially from actual results or events. Material
factors which could cause actual results or events to differ materially from a
conclusion, forecast or projection in such forward-looking information
include, among others: the Company's growth strategy may fail, the Company is
currently dependent on the oil and gas sector for the majority of its sales,
the Company may not be able to develop its proposed new products and services,
risks related to expanding operations, the Company is dependent on a few major
customers, the Company's expansion plans carry a number of risks, a robust
market for wind power products in China is still in the process of developing,
the Company has not demonstrated the ability to deliver its wind power
products, changes in technology or product requirements may affect the
Company's ability to deliver wind power products, there is significant
uncertainty surrounding wind power regulation in China, the Company must meet
Chinese governmental localization requirements in producing its wind power
products, there are uncertainties related to the Company's wind power
agreements with certain Chinese companies, the Company is dependent on key
personnel, the Company depends on its intellectual property and the failure to
protect that intellectual property may adversely affect the Company's future
growth and success, the Company may require additional capital to expand its
operations, the Company currently faces and will continue to face significant
competition, the Company business currently faces seasonal fluctuations in
revenues, the Company may not have adequate insurance for all potential
claims, changes in raw material or energy cost may adversely affect the
Company's operating margins, the Company's operations are subject to
environmental risks and hazards, the Company faces specific risks associated
with doing business in China (including risks relating to state ownership,
government intervention, foreign investment, repatriation of profit and
currency conversion, shareholders' rights and enforcement of judgments,
developing legal system, recent Chinese regulations relating to cross-border
mergers and acquisitions, protection of intellectual property rights, permits
and business licenses, appropriation, tax, infrastructure and interest rate
fluctuations), the Company faces specific risks associated with doing business
in Kazakhstan, the Company is subject to exchange rate fluctuations, a
significant percentage of the Company's common shares are owned, in the
aggregate, by its directors and officers, the Company may be affected by
actions of its joint venture partner, expressions of interest may not turn
into sales or revenue, projections with respect to the size of the Kazakhstan
market and the Company's ability to profitably access such market from Daqing
or locally may not align with the Company's expectations and a similar risk
with respect to the markets in the Commonwealth of Independent States
(including Azerbaijan, Armenia, Belarus, Georgia, Kyrgyzstan, Moldova, Russia,
Tajikistan, Turkmenistan, Uzbekistan and Ukraine), and Indonesia, India, Saudi
Arabia, Oman, and Peru.
    The Company cautions that the foregoing list of material factors is not
exhaustive. When relying on the Company's forward-looking information to make
decisions, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. The Company has assumed
a certain progression, which may not be realized. It has also assumed that the
material factors referred to in the previous paragraph will not cause such
forward-looking information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is subject to
change and there can be no assurance that such assumptions will reflect the
actual outcome of such items or factors. For additional information with
respect to certain of these and other factors, refer to the risk factors
section of the Company's Annual Information Form dated July 10, 2007 filed
with Canadian securities regulators, which is available on SEDAR at
www.sedar.com.
    The Company has included in this news release figures based on
expressions of interest, which are non-GAAP measures. Readers are cautioned
that expressions of interest are not recognized measures under Canadian GAAP
and should not be construed to be an indicator of performance or liquidity or
cash flows. The Company's method of calculating these measures may differ from
methods used by other entities and accordingly the Company's measures may not
be comparable to similar measures used by other entities. The Company uses
these figures because management has a high degree of confidence that the
expressions of interest will turn into sales and it believes such figures
provide a useful indication of the Company's progress in diversifying its
market internationally.

    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS
THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, THE COMPANY
EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.





For further information:

For further information: Kim Oishi, Senior Vice President, Finance and
Business Development, (416) 804-9228, koishi@hanweienergy.com

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HANWEI ENERGY SERVICES CORP.

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