ANHUI, China, Jan. 20, 2009 (GLOBE NEWSWIRE) -- China Runji Cement Inc. (OTCBB:CRJI) ("CRJI" or "the Company"), a leading producer and distributor of cement in Anhui Province of China today announced that the Company has passed the water and soil preservation assessment at the construction site of its third cement clinker production line, hence allowing the Company to submit a formal application for commencing the construction work on its third production line with an anticipated output of 4,500 tons of cement per day.
After the third cement production line is online, CRJI will be able to supply its regional market with over 10,000 tons of cement per day, or around 4 million tons per year. This will make CRJI one of the largest cement manufacturers in China.
Subject to the approval of the government, CRJI plans to build the third cement clinker production line within two years in order to capture potential opportunities in the growing Chinese cement market driven by a 4 trillion RMB stimulus plan announced by the Chinese central government in October of 2008.
As part of the 4 trillion RMB stimulus package, the Anhui provincial government (where CRJI is located) will be investing 67 billion RMB (or USD 9.8 billion) in infrastructural investment to put towards the provincial city airport, 165 km of highways in the province and railways up to 400 km in length over the next 5 years. It is anticipated that these projects, among others in the Anhui province, will boost demand for CRJI's concrete products despite a lagging economy.
"The 4 trillion RMB central government stimulus plan and the RMB 67 billion contributed by the Anhui province should kick-start long term growth in cement demand," CRJI's President and CEO, Mr. Zhao Shouren said. "Unlike the American economy which is boosted by real estate, the growth of the Chinese economy is driven through governmental investment in the country's infrastructure. As the only producer of high grade PII52.5 cement within a 100 mile radius from our facility, we are well positioned to deliver cement for all of the anticipated infrastructural construction work in Anhui Province. That's why we see a need to add one more production line in the future."
About China Runji Cement Inc.
Founded in 2003, China Runji Cement, Inc. is one of the leading players in cement production and distribution. The Company's certified manufacturing facilities contain cutting-edge technology and advanced equipment and are capable of producing as much as 2 million tons of cement annually. Furthermore, the Company's solid distribution network and customer-orientated services have earned CRJI's products a superior reputation among its customers. Headquartered in Anhui Province, the Company's markets include major local cities such as Hefei, Nanjing, and Liu'an.
For more information on the Company and its products, please visit www.chinarunji.com.