Trading Symbol: MCV
TORONTO, Nov. 9 /CNW/ - McVicar Resources Inc. ("McVicar") is pleased to
announce that its Chinese subsidiary, Zhejiang Hongbo Chemical Co. Ltd.
("Hongbo") has reached a three year supply agreement with Tinci High-Tech.
Materials Co. Ltd. ("Tinci") valued at RMB 200 million (~CDN $25 million).
Under the terms of the agreement, Hongbo will supply Tinci with specialty
chemicals used in personal care products and lithium batteries, beginning on
January 1, 2008. Proportionately, the specialty chemicals used in personal
care products represent approximately 80% of the order in terms of value, with
the remaining 20% being specialty chemicals used in lithium batteries. In
addition, under the terms of the agreement, Hongbo agrees to sell and deliver,
and Tinci agrees to purchase and accept a minimum of 90% of the annual orders.
"I am extremely pleased with the signing of this major supply agreement
by Hongbo, which follows a series of orders from major international companies
in recent months. Hongbo's emphasis on innovation and product quality has
helped to build the company's reputation, both domestically and
internationally," commented Dr. Gang Chai, President & CEO of McVicar, "We are
confident that our chemical business will continue to experience rapid
The Tinci Group is located in Guangzhou, Southern China, and has
businesses involved in specialty chemistry, pharmaceutical and environmental
engineering. Since 2003, Tinci has been marketing Hongbo's specialty
chemicals, designed for application in personal care products, to the second
largest shampoo manufacturer in China. Through Tinci's marketing efforts,
Hongbo has previously sold between RMB 5 million to RMB 30 million to this
shampoo manufacturer. Tinci was the largest customer to Hongbo before a DuPont
order was recently received, valued at US $20 million. This new order
represents the single largest order so far in the company's history.
"We have been Hongbo's largest customer for the last four years,"
commented Mr. Jinfu Xu, Chairman of Tinci Group, "and we are very satisfied
with the functionality and quality of the chemicals from Hongbo. The Tinci
group understands the importance of securing a high quality and low cost
supplier of specialty chemicals to partake in the rapid growth of China's
Zhejiang Hongbo Chemical Co. Ltd. is the wholly owned Chinese subsidiary
of McVicar (Hongkong) Advanced Material Co. Ltd., which is 51% owned by
McVicar through an equity acquisition earlier this year. Hongbo actively
engages in the research, production and marketing of specialty chemicals for
the personal care, pharmaceutical and industrial markets.
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Although we believe that
our expectations are based on reasonable assumptions, we can give no assurance
that our expectations will materialize.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Dr. Gang Chai at: 55 University Avenue, Suite
605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,