NEW YORK and HARBIN, China, Jan. 18, 2011 (GLOBE NEWSWIRE) -- American Jianye Greentech Holdings, Ltd. (OTCBB:AJGH), a leading developer, manufacturer and distributor of alcohol-based automobile fuel and civil-use fuel in China, today announced that it has signed a marketing cooperation agreement with Beijing U-fuel New Technology Equipment Co., Ltd, a mobile fuel container manufacturer and marketer and wholly-owned subsidiary of USA-based U-Fuel Group.
Under the agreement, American Jianye and Beijing U-fuel will jointly cooperate to leverage, cross-promote and market their respective competitive advantage in alcohol-based fuel and portable fuel stations, respectively. Specifically, Beijing U-fuel will market American Jianye's unique alcohol-based fuels to its existing fuel stations customers, delivered through a mobile fuel container made by Beijing U-fuel. The agreement initially covers the geography of Northeastern China and is anticipated to later expand to all of China where the two companies operate.
The joint sales and marketing strategy will be completed in three separate and distinct stages: 1) both companies will initially jointly establish a marketing network focused on American Jianye's existing market for clean fuels; 2) as Beijing U-fuel sells a mobile gas station to a new or existing retail gas customer, American Jianye will supply the desired alcohol-based clean fuel mix; 3) eventually, the companies will cooperate to expand to new geographic areas using this collaborative and cooperative joint marketing approach to sales.
Mr. Haipeng Wang, Chairman and Chief Executive Officer, commented, "We are pleased to reach agreement with Beijing U-fuel on a collaboration agreement that can enhance the sales of both companies. We look forward to assisting Beijing U-fuel as it sells its unique mobile fuel containers combined with the utility and cost advantage of our alcohol-based automobile fuels that lower cost and are safer for the environment while working well in conventional combustion engines. We believe that the sensible mobile tank solution for retail gas station operators offered by Beijing U-fuel combined with the value-add of American Jianye will make for a compelling selling proposition for operators looking to stay abreast of consumer demand trends and consistent with Chinese government policy initiatives in the area of clean fuel technologies."
American Jianye notes that oil consumption in China is increasing rapidly with favorable implications for demand for American Jianye clean fuel products that meet the need for clean and cost-effective alcohol-based automotive fuels. AJGH will refer to its collaboration agreement with Beijing U-fuel as its "retail chain management" growth strategy designed to speed up the development of its clean fuel retail business. It is anticipated that American Jianye will expand its distribution network extensively throughout much of China over the next several years through its existing expansion strategy, and the joint marketing with Beijing U-fuel will help accelerate these expansion efforts particularly for retail automotive gas station operators.
About Beijing U-fuel New Technology Equipment Co., Ltd
Beijing U-fuel New Technology Equipment Co., Ltd is a subsidiary of USA-based U-Fuel Group. U-Fuel Group entered into China in the year of 2000 to establish the American sole company—Beijing U-Fuel New Technology Container Equipment Co., Ltd in the Beijing Economic & Technological Development Area. As a pioneer in the field of hazard liquid storage and dispensing, U-Fuel Group has designed and tested more types of fuel systems than any other company in the world. U-Fuel has over 20 United States and international fuel system patents including the patent for testing nuclear resistant fuel tanks.
U-Fuel's products are quite popular in Chinese markets. Petrochina, Sinopec, Beijing Bus Company, Tianjin Port, Xinjiang Desert Shipping Company, Siemens and the like big enterprises have installed the U-Fuel Portable Fuel Equipment in Beijing, Dalian, Tianjin, Xinjiang, Hangzhou, Shenyang, Huzhou and the like cities. U-Fuel's Portable Fuel Station has also exported to South Korea. U-Fuel products are primarily used for equipping automobile fuel stations, airport fuel facilities, and marine fuel ports; fueling commercial fleets; and transporting hazardous liquids. With U-Fuel's impeccable reputation for quality and safety, their fuel products are widely accepted and used by the United States government and thousands of companies throughout the world. Most major petroleum companies (i.e. BP, Conoco Phillips, Exxon Mobil, and Shell) and most major shipping companies (i.e. DHL, FedEx, and UPS) have chosen to use U-Fuel Portable Fuel Stations.
Additional information about the company is available at: http://en.ufuelchina.com/newEbiz1/EbizPortalFG/portal/html/about.html?ProgramShow_ProgramID=c373e90e2bff0a2c8fee8d66d4115e95.
About American Jianye Greentech Holdings
American Jianye Greentech Holdings, headquartered in Harbin, China, is a leading developer, manufacturer and distributor of alcohol-based fuel. The company's alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. The unique combination of catalysts in the fuel enhance fuel octane rating and engine power, inhibit the premature oxidation of the fuel, help remove sediment in the carburetor, and prevent the erosion of the engine cylinder surface.
Additional information about the company is available at: www.americanjianyegroup.com.
This press release contains certain "forward-looking statements" relating to the business of the Company. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.