As previously announced, the Makin Group and the Sejahtera Group (the “Joint Venture Partners”) have agreed to purchase 100 percent of the first year production from the initial 150,000 MTPA joint venture facility. Although commissioning and final calibration is expected to continue throughout the remainder of the year, production is currently underway on the first sales order of 20,000 metric tonnes of SCR. The order, sold to the Salim Oil Palm Plantation, is expected to be delivered in multiple shipments and completed by December 31, 2010. The first truck load of SCR was loaded and shipped as part of the grand opening ceremony.
Hanfeng is also pleased to announce that it will add 100,000 MTPA of bulk blending capacity to the multi-product facility, bringing the total design capacity to 250,000 MTPA. Construction of the bulk blending plant is expected to be completed and operational in 90 to 120 days. The additional blending capacity will enable the joint venture to provide a wider range of products, including CarbonPower(R) coated urea (“CPU”). The Joint Venture Partners have agreed to purchase 100 percent of the production from the bulk blending plant as well.
“Our joint venture partners are recognized leaders in the Indonesian and Southeast Asian agricultural markets. In aligning ourselves with them, we gain a first-mover advantage in a large and growing market for value add products like our SCR and CPU. We are very pleased to be their partner, and look forward to growing our presence in this significant market,” stated Xinduo Yu, president and CEO of Hanfeng.
About Matahari Kahuripan Indonesia (“MAKIN Group”)
MAKIN Group is one of the ten largest companies in Indonesia, and the largest domestic tobacco producer. With more than 20 subsidiaries, its scope of operation includes tobacco plantation and tobacco manufacturing, as well as oil palm plantation and production.
About Sumber Agrindo Sejahtera (“Sejahtera Group”)
Sejahtera Group is the largest agricultural distributor in Indonesia. It distributes fertilizers, pesticides, and agricultural products and equipment through its network in Malaysia, Indonesia, Thailand and other Southeast Asian countries.
About Hanfeng Evergreen Inc.
Hanfeng is the largest producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China’s agriculture market with its establishment of the first commercial scale production in China. The Company’s production facilities are located in prime agricultural regions of China. Hanfeng has recently completed its first production facility outside China. Located in Surabaya, Indonesia, the facility will service the growing South East Asian market. Hanfeng is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. hanfengevergreen.com
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these 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. All amounts are stated in Canadian dollars except for noted otherwise.