TORONTO, ONTARIO--(Marketwire - July 23, 2012) - Hanfeng Evergreen Inc. (TSX:HF) ("Hanfeng" or the "Company"), announced today that it has taken further steps to reduce under-performing activities and facilities in China.
Going forward, the primary use of the Jiangsu facility will be the ongoing training of existing and future staff, and research and development of advanced fertilizer products and technologies. Training will initially be focused on existing staff from the Indonesian Joint Venture, both for the current operations in Surubaya, Indonesia as well as in preparation for the future planned expansion in Indonesia. The Company will also train any future licensees of Hanfeng's technology. In addition, the Jiangsu facility will continue to produce certain specialty fertilizer products for commercial sale to local customers of a targeted minimum of 25,000 metric tons per annum. This decision to refocus the facility is a result both of the loss of a local urea supplier as previously disclosed, which led to decreased competitiveness in a challenging local market, as well as increased demands for training.
At the same time, Hanfeng intends to sell its previous research and development facility in Shanghai, China.
Commenting on this, Xinduo Yu, President and CEO of Hanfeng stated: "The market factors in the Jiangsu area, and the loss of the local urea producing plant, make it an unattractive area in which to concentrate Hanfeng's resources. Working closely with our core customers, we continue to move towards a more R&D-focused business developing specialized products, on a company-wide basis. The Jiangsu facility will serve as a more enhanced R&D center that will provide continuous training for current and future joint venture facilities as more capacity comes on stream. The past year we have seen a number of teams from our Indonesian joint venture come to Jiangsu for one-on-one training, which has resulted in increased production efficiencies in Indonesia. We expect this to continue as we move forward with our expansion plans in Indonesia, having previously announced a 600,000 metric ton per annum expansion on the island of Kalimantan, Indonesia."
About Hanfeng Evergreen Inc.
Hanfeng is a leading producer and supplier of value-added fertilizer solutions in emerging markets. It is the largest producer of slow and controlled release fertilizer in two of world's most significant agricultural markets: the People's Republic of China ("China") and the Republic of Indonesia. As the first company to introduce slow and controlled release fertilizers into China's agriculture market, Hanfeng has established itself both as a market leader and innovator. A Canadian Company, Hanfeng is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange under the ticker HF.
This press release contains forward-looking statements based on current expectations. Forward looking statements include, without limitation, statements evaluating market and general economic conditions, and statements regarding growth strategy and future-oriented projected revenue, costs and expenditures. Actual results could differ materially from those projected and should not be relied upon as a prediction of future events. A variety of inherent risks, uncertainties and factors, many of which are beyond Hanfeng's control, affect the operations, performance and results of Hanfeng and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. Some of these risks, uncertainties and factors include the impact or unanticipated impact of: current, pending and proposed legislative or regulatory developments in the jurisdictions where Hanfeng operates, in particular in China and the Republic of Indonesia; changes in tax laws; political conditions and developments; intensifying competition from established competitors and new entrants in the fertilizer industries; technological change; currency value fluctuation and changes in foreign exchange restrictions; changes in Chinese government support or restrictions on foreign investment; general economic conditions worldwide, as well as in China and South East Asia; Hanfeng's success in developing and introducing new products and services, constructing and operating new manufacturing facilities, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels. This list is not exhaustive of the factors that may affect any of Hanfeng's forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. Hanfeng undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or for any other reason. Readers are cautioned not to put undue reliance on forward-looking statements.