Migao Corporation Announces New Production Location in Changchun, China
Tuesday February 27, 4:00 pm ET
TORONTO, ONTARIO--(MARKET WIRE)--Feb 27, 2007 -- Migao Corporation, a leading producer of specialty potash fertilizers for the Chinese market, is pleased to announce that it will be constructing a new potassium sulphate fertilizer production facility in Changchun, Jilin Province, China.
"Migao is currently the largest domestic supplier of potassium nitrate in China. With the addition of Changchun Migao, we expect to be the number one supplier of potassium sulphate in China," said Mr. Liu Guocai, Migao's President and CEO. "Changchun is ideally located due to its proximity to suppliers, infrastructure, and large growing markets for both potassium sulphate and its byproduct, hydrochloric acid."
Changchun Migao's first construction phase is scheduled to be completed in early 2008 and will produce 40,000 tonnes of potassium sulphate fertilizer. Migao has secured land use rights for the location as well as preliminary approvals from local government agencies to begin construction.
The new wholly owned subsidiary is Migao's fifth production facility in China and will be eligible for tax breaks similar to the Company's first four facilities. The new plant, when fully operating, will also be producing as a byproduct of potassium sulphate production, approximately 50,000 tonnes of hydrochloric acid.
To date, Migao has constructed 200,000 tonnes of design capacity for its two core potash-based fertilizers. With the addition of a 20,000-tonnes expansion unit at Sichuan Migao this summer, a new 40,000 tonne potassium sulphate facility being completed near Shanghai later this year, and today's announced 40,000 tonne facility, Migao will have a run rate in excess of 300,000 tonnes by the first quarter of calendar 2008.
Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in strategic locations throughout China for the production and sale of potassium nitrate and potassium sulphate to the Chinese domestic agricultural market. Shares of Migao Corporation trade on the TSX Venture Exchange under the symbol 'MGO'.
Source: Migao Corporation
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