CRJI Has HUGE Market Opportunity and Increased Demand


      
 

Since 1985, China's cement output has grown so fast that the country has been ranked FIRST in the world for 20 consecutive years.

Not to mention, China expects to continue to see both (1) demand for cement products to increase, and (2) prices for cement products increase.

Below are a few more reasons why CRJI could continue to grow and see share prices move northbound...

                           #1.  Aggressive Expansion Plan!

 
CRJI's vision is to become a cement manufacturer that is competitive on the global stage.
 
In order to grow its business CRJI is planning to construct a third production line in late 2010, which is expected to have a daily cement clinker production capacity of 5,000 tons or 1.5 million tons annually.

Upon completion, company’s total cement production capacity is expected to reach 3.6 million tons per year, and cement clinker production will reach 3 million tons per year, controlling 30% of the market share within a 100 miles radius of our production facility.

That's over 200% growth in market share from current levels!

Also, the expansion will drive better economies of scale and thereby leading lower costs and better margins.

 
                    #2.  Green Friendly Cement Producer!

The Company produces cement through an energy efficient and environmentally friendly cement production technique. This energy efficient process will enable CRJI to not only cut down on its fuel costs but also have a lower cost base and thereby enabling it with the ability to price its products more competitively.

The Company’s pollution control exceeds the national standard and received “green building material” certification in 2007. Since, these quality certifications are mandatory to export cement abroad, it will enable the company to export its high quality cement to international market and drive better pricing and margins.  

                           
                           #3.  Huge Market Opportunity!

China is one of the fastest growing economies in the world.

Even when the world was going through a recession, the Chinese economy was growing well over 8% and the country is expected to continue its robust GDP growth for the next 3 years.

Along with the economic development the industrialization and urbanization progress in China should continue to expand the demand for cement products.

China's net cement export will be maintained at 40 million tons in 2010. Taking into account both domestic and export cement demands, China's cement industry shall see a 10% per annum growth in demand in the next three years. Also, the elimination of old capacities may even create periodic supply shortage and thereby presenting Anhui Province Runji Cement Co. with an opportunity to make significant profits.

Moreover, The Chinese government has mandated the elimination of 250 million tons of outdated cement production capacity by 2010, so it is expected that industry consolidation will accelerate and market shares and industry profits will be further concentrated to strong companies. Therefore, there will be additional value created by acquisition opportunities as a result of industry consolidation.

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CRJI Announces Savings of $650,000 with Capacity to Reduce the Electricity Cost by $ 4.6 Million

ANHUI, China, Feb. 2, 2010 (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 its electricity cost has reduced RMB 4.5 million, or US$650,000 following the completion of its waste heat power generator since October 25, 2009.

The waste heat power generator has reached 84% of its designed capacity as of December 25, 2009.

The power generator is able to recycle the waste heat obtained from the cement production process, and it has produced 9 million kilowatt-hour of electricity to support CRJI's two cement production line since October 25, 2009.

With a designed capacity of 70-Million kilowatt-hour per year, it has reached 84% of its designed production capacity within 2 months commencing from October 25 to December 25, 2009.
 
Upon full fledge operation, this power generator is able to reduce the electricity cost of CRJ by US$4.6 million and hence increasing profitability.
 
Since completion, it has saved electricity cost totaling RMB 4.5 million, or US$650,000.

"We are very delighted to see the completion of waste heat power generator and endorsement of the Provincial Electric Power Bureau by issuing a certificate of national electricity generation," Mr. Shouren Zhao, CRJI Chairman and CEO, stated. "Being a green practice as well as an attempt of cost control, our low-temperature waste heat power generator is capable of covering 40% of electricity demand of our two existing cement production lines, and it can avoid releasing excessive heat to the environment. We believe that the installation of this power generator has contributed significantly to our leading industry position in the local cement market and will enable us to capture a growing share of an enormous market opportunity."

About China Runji Cement Inc.

Founded in 2003, China Runji Cement, Inc. is one of the leading players in cement production and distribution. In October 2007, the Company became a U.S. public company following the completion of a share exchange with Fitmedia Inc. The Company's certified manufacturing facilities containing cutting-edge technology and advanced equipment and are capable of producing as much as 1 million tons of cement clinker and 1.1 million cement annually. Furthermore, the Company's solid distribution network and customer-oriented services have earned CRJI's products a superior reputation in the local cement market. Headquartered in Anhui Province of China, the Company's markets include major neighboring cities such as Hefei, Nanjing, and Liu'an. For more information on the Company and its products, please visit our website:



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