China Shuangji Cement announced that its Dongfang cement plant on Hainan Island, which it previously announced was on a published list of more than 2,000 production lines across China that the Ministry of Industry and Information Technology (MIIT) wanted to phase out due to concerns over outmoded production methods, has been granted a long-term extension of its operating license until after a new state of the art 2,000,000 MT cement plant is completed and fully operational.
"Under this agreement, we will be able to keep our Dongfang production line open, which has a current annual capacity of 500,000 MT, until after we have constructed a new modern cement plant. We are presently negotiating with several banks and commercial funders to secure interest only loans for the money needed to build this new plant and are confident that we will be able to secure the funds on commercially competitive terms. Once completed, this new, state-of-the-art 2,000,000 MT cement facility in Dongfang, Hainan Province, will have an annual capacity 4 times greater than the capacity of the present plant. This will greatly assist us in our goal to become one of the top suppliers of high-grade bulk cement in China."
Once this new plant is online and fully operational, China Shuangji's total annual production run rate will be roughly 4,500,000 tons which would roughly equate to $180 million in sales and about $15 million in profits.
In keeping with our stature as a US publicly traded company, our growth plans, and our goal to upgrade to NASDAQ or NYSE/AMEX next year, we are also committed to providing transparency and high standards of corporate governance. We retained Column Associates to lead our search for a new CFO because we want to find the best possible candidate who will give our shareholders the confidence in our company that they deserve, to uphold our financial controls, and to provide effective communications to our global shareholder base while supporting our rapid growth plans.