ANHUI, China, May 21, 2008 (PRIME NEWSWIRE) -- China Runji Cement Inc. (OTCBB:CRJI) ("Runji" or "the Company"), a leading producer and distributor of cement in Anhui Province, PRC, today announced that it broke ground on the construction of a waste heat-fueled electric generator on May 16, 2008.
The construction of the new generator at Runji's Anhui province production site is an important step towards meeting the Company's strategic goals of lowering electric costs, one of the most expensive elements in cement production, and reducing reliance on outside power sources. Currently, electricity represents 23% of the Company's total production costs, which is expected be reduced to approximately 15% after the completion of the project by January 2009. The generator system will use waste heat produced during the production of cement to power a turbine, generating electricity. Total capital expenditures for the project will be $10 million; it is expected to save about $2.30 per ton of finalized cement products or roughly $4.6 million annually after the Company's second production line is completed. The generator will leave Runji less vulnerable to failures in the Chinese power grid, like an outage that lasted several days in February which forced the Company to temporarily suspend production.
"After months of planning, we are very excited to commence the construction of our waste heat electric generator," said Mr. Shouren Zhao, the Chairman and CEO of the Company. "This project will greatly improve Runji's profitability and margin, reduce production costs, increase the reliability of our power supply, and help us meet government energy conservation standards. Overall, we believe the generator will give us a unique competitive advantage and help us raise our profile among regional players in the cement industry."
About China Runji Cement, Inc.
China Runji Cement ("Runji or the Company") is one of the leading players in cement production and distribution in Anhui Province, China. The Company's certified manufacturing facilities contain cutting-edge technology and advanced equipment that are capable of producing over one million tons of cement annually. Runji's main products are PII52.5, PO42.5, PO32.5 and PC32.5 cement that sold under the "Runji" brand. The Company's solid client base and customer-orientated services have allowed Runji to dominate the local cement market. For more information on the Company and its products, please visit http://www.chinarunji.com/index.asp.
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